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2014 (1) TMI 305 - AT - Income TaxValidity of Reopening of Assessment – Held that:- The assessee have never asked for the reason from Assessing Officer, cannot now say that there was no reason for such reopening - if the assessee had asked such reason, Assessing Officer was bound to give such reason to the assessee also as held in GKN Driveshafts (India) Ltd. v. ITO [2002 (11) TMI 7 - SUPREME Court] Assessing Officer was duty bound to dispose of the objection, if any raised by the assessee, before completing the assessment - A presumption cannot be taken that Assessing Officer had no reason with him when he resorted to the reopening. Provision for bad-debts not considered – Computation of book profit u/s 115JA of the Act - The assessee had claimed the amount as provision for bad and doubtful debts - though the assessee called the amount a provision, what was effectively done was only a write-off of bad debts – Following M/s. Vijaya Bank Versus Commissioner of Income Tax & Anr. [2010 (4) TMI 46 - SUPREME COURT] - where there is a debit in the Profit & Loss account as provision for bad and doubtful debts, but if a corresponding amounts stood obliterated from loans and debts on the asset side of the balance sheet, it is not necessary for the assessee to show that the write-off is effected in each and every individual account of the debtors - Even though the amendment to the Act has been made retrospectively, assessee can always claim that the provision for doubtful debts was in fact reduced from debtors account and this was no more a provision for diminution in value of assets or provision for any unascertained liability – Thus, the order for addition made u/s 115JA set aside – Decided partly in favour of Assessee.
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