Bank Of India Vs ACIT

This case involves cross-appeals between the Bank of India and the Assistant Commissioner of Income Tax for the 2015-16 assessment year. The primary issues concern whether income from the bank's foreign branches should be excluded from its Indian taxable income and whether the bank is liable for Minimum Alternate Tax (MAT), including the treatment of foreign branch income and provisions for bad debts in the MAT calculation.

INCOME TAX APPELLATE TRIBUNAL
MUMBAI ‘B’ BENCH, MUMBAI

[Coram: Pramod Kumar, Vice President
and, Amarjit Singh, Judicial Member]

ITA No.: 1767/Mum/2019
Assessment year: 2015-16

Bank of India …………………….. Appellant
Taxation Department, 8th floor, Star House, C 5 G Block, BKC,
Bandra East, Mumbai 400 051 [PAN: AAACB0472C]

Vs.

Assistant Commissioner of Income Tax
Circle 2(1)(1), Mumbai ………………….Respondent

ITA No.: 2048/Mum/2019
Assessment year: 2015-16

Assistant Commissioner of Income Tax
Circle 2(1)(1), Mumbai …………………….. Appellant

Vs.

Bank of India ………………….Respondent
Taxation Department, 8th floor, Star House, C 5 G Block, BKC,
Bandra East, Mumbai 400 051 [PAN: AAACB0472C]

Appearances:
C Naresh, for the assessee
Rahul Raman, for the revenue

Date of concluding the hearing: October 27, 2020
Date of pronouncing the order: December 11, 2020

O R D E R

Per Pramod Kumar, VP:

1. This set of cross appeals, consisting of an appeal filed by the assessee as also another appeal filed by the Assessing Officer, call into question correctness of the order dated 25th April 2019, in the matter of assessment under section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], for the assessment year 2015-16.

2. These appeals raise two interesting issues, with wider ramifications, for our adjudication- first, whether or not the income of the assessee bank from its foreign branches, amounting to Rs 1,408.32 crores, is required to be excluded from its income taxable in India; and, second, whether or not the assessee bank is liable to subjected to Minimum Alternate Tax under section 115 JB, and, if so, whether the income of the foreign branches, amounting to Rs 1,408.32 crores, and, provision for bad doubtful debts amounting to Rs 5,359.64 crores in required to be excluded from the computation of book profits computed under section 11JB of the Act. Let us take up these two issues first, and then we will proceed to take up the remaining issues raised in the appeal.

To know more in details find the attachment file