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2014 (8) TMI 972 - HC - Income TaxDeduction for provision for bad and doubtful debts - AO held that in terms of Explanation (c) to the second proviso to section 115JA, the provision for unascertained liabilities is to be added to the book profit and it cannot be claimed as deduction - ITAT deleted the disallowance - Held that:- We find no error in the Revenue's plea that the amount claimed as deduction of provision for bad and doubtful debts representing unascertained liability should not be deducted from the book profit for the purpose of determining the income, in view of the retrospective amendment, vide Explanation (g) to section 115JA with effect from April 1, 1998, applicable to the assessment year 1998-99. The decision in the case of CIT v. HCL Comnet Systems and Services Ltd. reported in [2008 (9) TMI 18 - SUPREME COURT ] will not come to the aid of the assessee in view of the above amendment with retrospective effect as per the Explanatory Notes to the Finance (No. 2) Act, 2009, vide the Central Board of Direct Taxes Circulars mentioned above. - Decided against assessee.
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