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2020 (7) TMI 501 - AT - Income TaxDisallowance of short term capital loss on sale of shares - HELD THAT:- As assessee had filed various documents in the form of shareholders agreement, agreement of Banakhat etc., before the ld. AO which was not discussed by the ld. AO in his order for arriving at a conclusion that loss of shares on sale is not allowable. We find adjudication of all these documents would assist in proper decision making process of the issue involved herein. Hence, we deem it fit and proper in the interest of justice and fair play, to remand this issue to the file of the ld. AO for denovo adjudication in accordance with law. In view of this decision from our side, we refrain to give our opinion on various arguments made by the learned Counsel for the assessee and all those issues are left open. Assessee is also at liberty to furnish additional evidences, if any, in support of its contentions. Accordingly, ground No.1 raised by the revenue is allowed for statistical purposes. Claim of deduction towards bad debts u/s.36(1)(vii) - MAT Computation - Assessee has not made any claim - assessee had voluntarily added back this sum in the return of income under normal provisions of the Act - HELD THAT:- We find from the computation of income for the year under consideration that even without adding these bad debts of ₹ 2.27 Crores in the profit and loss account of the assessee, the assessee would not fall within the ambit of provisions of Section 115JB in view of loss - as rightly pointed out by the ld. AO in his order that this would certainly have an impact in the carry forward of book loss which need to be reduced while computing the book profits u/s.115JB in future years. But at the same time, we find that this is not an item that could be added back as per the list of items required to be added back pursuant to Explanation to Section 115JB(2) - It is not the case of the revenue that this claim of bad debt of ₹ 2.27 Crores is ingenuine or is not emanating from the business of the assessee company. As in the case of Apollo Tyres Ltd., [2002 (5) TMI 5 - SUPREME COURT] had categorically held that the ld. AO is not empowered to disturb the net profit as per profit and loss account which has been prepared in accordance with part II and part III of schedule-VI of the Companies Act, 1956, except in respect of specified items that could be disallowed and reduced as per Explanation to Section 115 JB(2) of the Act. In view of this, we do not appreciate the addition to book profits made by the ld. AO. - Decided against revenue. Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [2020 (5) TMI 359 - ITAT MUMBAI]
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