Tribunal rules Section 115JB doesn't apply to bank for certain years

The tribunal ruled that Section 115JB did not apply to the assessee bank for the assessment years 2007-08 and 2009-10. The tribunal dismissed the Revenue's appeals on this issue, citing previous decisions and a ruling by the Delhi High Court. The computation of interest under Section 244A for AY 2007-08 was referred back to the AO for reevaluation based on earlier directions and legal precedents. The general grounds raised by the Revenue for both assessment years were dismissed. Ultimately, the appeal for AY 2007-08 was partly allowed, while the appeal for AY 2009-10 was dismissed.

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Issues:
1. Applicability of Section 115JB of the Income Tax Act, 1961 to the assessee bank for assessment year 2007-08.
2. Computation of interest u/s 244A of the Income Tax Act, 1961 payable to the assessee on refund.
3. General ground raised by Revenue in the appeal for assessment year 2007-08.
4. Applicability of Section 115JB to banks for assessment year 2009-10.
5. General ground raised by Revenue in the appeal for assessment year 2009-10.

Issue 1: Applicability of Section 115JB for AY 2007-08:
The Revenue appealed against the CIT(A)'s order regarding the applicability of Section 115JB to the assessee bank for AY 2007-08. The tribunal, following previous decisions, held that Section 115JB shall not be applicable to the assessee bank for that assessment year. The tribunal referred to various case laws and decisions, including the decision of the Hon'ble Delhi High Court, to support its ruling. The appeal of the Revenue on this issue was dismissed.

Issue 2: Computation of Interest u/s 244A for AY 2007-08:
The Revenue raised grounds concerning the computation of interest u/s 244A payable to the assessee on refunds. The tribunal, in line with previous decisions, restored this issue to the AO for fresh examination based on directions given in earlier cases and the decision of the Hon'ble Delhi High Court. The grounds raised by Revenue on this issue were allowed for statistical purposes.

Issue 3: General Ground for AY 2007-08:
A general ground raised by Revenue in the appeal for AY 2007-08 was dismissed by the tribunal.

Issue 4: Applicability of Section 115JB for AY 2009-10:
The appeal for AY 2009-10 raised the issue of the applicability of Section 115JB to banks. The tribunal, based on its decision for AY 2007-08, ruled in favor of the assessee, deciding that Section 115JB shall not be applicable. The grounds raised by Revenue on this issue were dismissed.

Issue 5: General Ground for AY 2009-10:
A general ground raised by Revenue in the appeal for AY 2009-10 was dismissed by the tribunal.

In conclusion, the appeal for AY 2007-08 was partly allowed, and the appeal for AY 2009-10 was dismissed. The tribunal's decisions were based on the applicability of Section 115JB and the computation of interest u/s 244A, following previous rulings and legal precedents.

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