Banking company not subject to MAT provisions for AY 2006-07. Issue debatable, not suitable for rectification.

The ITAT upheld the CIT(A)'s decision that the MAT provisions were not applicable to a banking company for AY 2006-07. The ITAT dismissed the Revenue's appeal, stating that the issue was debatable and not suitable for rectification under section 154 due to various judicial pronouncements favoring the assessee's position.

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Issues:
- Applicability of MAT provisions to a banking company
- Invocation of section 154 for rectification of mistake in the assessment order

Analysis:
1. The case involved an appeal by the Revenue against the order of the Commissioner of Income-tax(A) regarding the applicability of MAT provisions to the assessee for AY 2006-07.
2. The Assessing Officer (AO) determined the income under normal provisions as the tax payable was more than under section 115JB, applicable to companies falling under the definition of "company" as per section 2(17) of the Act.
3. The CIT(A) held that the assessee was a company as defined under section 2(17)(iii), making section 115JB applicable.
4. The ITAT did not entertain the appeal on the issue of section 115JB as the assessee did not have approval from the Chief Commissioner of Income Tax (COD).
5. The AO later passed a rectification order under section 154, noticing a mistake where tax payable under section 115JB was higher than under normal provisions.
6. The CIT(A) allowed the appeal of the assessee, considering the issue debatable and not suitable for rectification under section 154.
7. The Revenue challenged the CIT(A)'s decision, arguing that the rectification was valid as the issue was part of the original assessment order.
8. The ITAT analyzed the applicability of section 115JB to banking companies, noting that prior to the Finance Act, 2012 amendment, MAT provisions were not applicable to banking companies.
9. The ITAT upheld the CIT(A)'s decision, stating that the issue was debatable, and rectification under section 154 was not appropriate as various judicial pronouncements favored the assessee's position.
10. The ITAT dismissed the Revenue's appeal, affirming the CIT(A)'s decision in line with the previous rulings and the debatable nature of the issue.

This comprehensive analysis highlights the key legal points, arguments, and decisions made in the judgment regarding the applicability of MAT provisions to a banking company and the invocation of section 154 for rectification of a mistake in the assessment order.

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