IN THE ITAT, MUMBAI 'B' BENCH

PRAMOD KUMAR, V.P. & AMARJIT SINGH, J.M.

Bank of India v. Asstt. CIT

IT Appeal Nos. 1767 & 2048 (Mum.) of 2019

A.Y. 2015-16

11 December, 2020

Appellant by: C. Naresh

Respondent by: Rahul Raman

Pramod Kumar, V.P.

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 25-4-2019, 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 115JB, 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 115JB 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.