Benefit of S. 115JB can’t be denied to Statutory Corporation merely because an Error in returns due to Mistake of Official: Patna HC [Read Judgment]

The Patna High Court has ruled that benefit of Section 115JB of the Income Tax Act cannot be denied to a Statutory Corporation merely because an error in the returns due to mistake of the official.

Instant appeal arose with regard to grant of benefit to the assessee under Section 115JB of the Income Tax Act. Here assessee is the Bihar State Finance Corporation created by Central Finance Corporation Act, and not a company registered under the Companies Act, 1956.

The division bench comprising of Chief Justice Rajendra Menon and Justice Rajeev Ranjan Prasad observed the detailed order of Appellate Tribunal and found that the statutory benefit accruing to the Corporation by virtue of Section 115JB cannot be denied merely on the ground that in the returns filed erroneously due to mistake of the official.

The bench had not seen any error in warranting reconsideration and the Tribunal has not committed any error.

The bench also said that, “That apart the deduction granted by the Tribunal which is also challenged in these appeals are based on due appreciation of the evidence and material that came on record and we see no perversity or illegality in the same warranting reconsideration, exercising our limited jurisdiction in a proceeding under Section 260A of the Income Tax Act”.