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2004 (5) TMI 29 - HC - Income TaxWhether, Tribunal was correct in law in holding that the reserve for bad and doubtful debts cannot be added to the balance of profit disclosed in the annual accounts of the assessee-insurance company? Whether, the Tribunal was correct in law in deleting the disallowance of amount representing expenditure which was partly for payment of entertainment allowance to the employees and partly for offering customary hospitality to the constituents? – Both questions are answered in favour of assessee – AO added back the amount for “Provision for taxation” to the balance of profits disclosed by the annual accounts of the assessee-insurance Company – Since there is nothing to show that any sum was paid on account of any rate or tax levied on the profits, etc., it was not open for the Assessing Officer to add back the figures for “provision for taxation”
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