Commissioner Of Income Tax (Large Tax Payer Unit), Kolkata v. United Bank Of India

OD – 5 ORDER SHEET IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE ITA/116/2019 COMMISSIONER OF INCOME TAX (LARGE TAX PAYER UNIT), KOLKATAVERSUSUNITED BANK OF INDIA BEFORE: The Hon'ble Justice SURYA PRAKASH KESARWANI The Hon'ble Justice RAJARSHI BHARADWAJ Date : 24[th] November 2023. Appearance:Ms. Smita Das De, Adv.…. for appellantMr. Abhrotosh Majumder, Adv.Mr. Soumitra Chowdhury, Adv.Mr. Avra mazumdar, Adv.Mr. Samrat Das, Adv.Ms. Elina Dey, Adv.… for the respondent The Court:- Heard Ms. Smita Das De, learned Senior StandingCounsel for the Income Tax Department/appellant and Mr. AvraMazumdar, learned Counsel for the respondent. This appeal has been admitted on the following substantial questionof law :- “Whether a nationalised banking company would be subjectto the requirements of Section 115 JB of the Income Tax Act,1961?” Section 115JB of the Income Tax Act, 1961 as it stood at therelevant point of time i.e. relating to Assessment Year 2005-06, isreproduced below :- 115JB. (1) Notwithstanding anything contained in any other provisionof this Act, where in the case of an assessee, being a company, theincome-tax, payable on the total income as computed under this Act inrespect of any previous year relevant to the assessment yearcommencing on or after the 1[st] day of April, 2001, is less than sevenand one-half per cent of its book profit, [such book profit shall bedeemed to be the total income of the assessee and the tax payable bythe assessee on such total income shall be the amount of income-tax atthe rate of seven and one-half per cent.] (2). Every assessee, being a company, shall, for the purposes of thissection, prepare its profit and loss account for the relevant previousyear in accordance with the provisions of Parts II and III of Schedule VIto the Companies Act, 1956 (1 of 1956):Provided that while preparing the annual accounts including profitand loss account, - (i)the accounting policies; (ii)the accounting standards adopted for preparing suchaccounts including profit and loss account; (iii) the method and rates adopted for calculating thedepreciation, shall be the same as have been adopted for the purposeof preparing such accounts including profit and loss account and laidbefore the company at its annual general meeting in accordance withthe provisions of section 210 of the Companies Act, 1956 (1 of 1956) : Provided further that where the company has adopted oradopts the financial year under the Companies Act, 1956 (1 of 1956),which is different from the previous year under this Act, - (i)the accounting policies; (ii)the accounting standards adopted for preparing suchaccounts including profit and loss account; (iii)the method and rates adopted for calculating thedepreciation, shall correspond to the accounting policies, accountingstandards and the method and rates for calculating the depreciationwhich have been adopted for preparing such accounts including profitand loss account for such financial year or part of such financial yearfailing within the relevant previous year. Learned counsel for the Appellant fairly states that the questioninvolved in this appeal is squarely covered against the revenue by judgement of this Court dated 03.12.2021 in ITA No. 12 of 2021(Principal Commissioner of Income Tax -vs- Damodar Valley Corporation). Both the learned counsel for the parties jointly agree that thesubstantial question of law involved in the present appeal is squarelycovered against the Appellant by above referred co-ordinate Benchjudgment of this Court and in view thereof, the appeal deserves to bedismissed. In view of the aforesaid, this appeal is dismissed and theaforequoted substantial question of law is answered accordingly. (SURYA PRAKASH KESARWANI, J.) (RAJARSHI BHARADWAJ, J.) RS