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2012 (6) TMI 415 - AT - Income TaxMAT - re-computation of book profit on ground that provision for doubtful debts and provision for contingencies were not added to arrive at the book profits u/s 115JB - Held that:- It can be seen that the provision of bad and doubtful debts has been reduced from the gross debtors and the net sundry debtors are shown as asset in the balance sheet. Thus the provision for bad and doubtful debts cannot be termed as a provision for liability but is in the nature of diminution in the value of asset. Facts in the present case are identical to that of the case of Yokogwa India Ltd wherein it is held that if the bad debt or doubtful debt is reduced from the loans and advances or the debtors from the assets aside of the balance sheet, the Explanation to Section 115JA or JB is not at all attracted. Hence, CIT(A) has rightly deleted the addition made on aforesaid ground - Decided in favor of assessee
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