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2014 (10) TMI 857 - HC - Income TaxMAT computation - Whether the provision for doubtful debts and the provision for loss of assets is required to be added back to the book profit as required under Section 115JA of the Act in terms of explanation to Section 115JA of the Act in particular clauses (c) and (g)? - Held that - From judgment of CIT v. Yokogawa India Ltd. 2011 (8) TMI 766 - KARNATAKA HIGH COURT it is clear if the bad debt or doubtful debt is reduced from the loan and advances from the debtors on the assets side of the balance sheet the Explanation to Section 115JA or 115JB of the Act is not at all attracted. If it is not reduced Section 115JA of the Act is attracted. It is purely a question of fact. From the material on record it is not possible to make out whether the aforesaid bad and doubtful debts are reduced from the loan and advances of the debtors from the assets side of the balance sheet. Without ascertaining the said fact it is not possible to answer the substantial question of law one way or the other. Therefore the proper thing to do is to set aside the impugned orders and remit the matter back to the First Appellate Authority with a direction to the Authority to look into the records and then record a finding one way or the other in the light of the aforesaid judgment. That would meet the ends of justice. Therefore the substantial question of law is not answered. Impugned orders passed by both the Appellate Authorities are set aside and the matter is remitted back to the First Appellate Authority for fresh consideration in the light of the judgment and pass appropriate orders.
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