Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 938 - ITAT MUMBAIMinimum alternate tax (MAT) - Addition of reserves - adjustment of book profits - Retrospective amendment in clause (g) of Explanation (2) to section 115JA - Whether the CIT(A) erred in deleting the addition made to book profit in respect of provisions for bad and doubtful debts holding that the provisions are made against the ascertained liability - Held that:- The decision in Whirlpool of India Limited and Another Vs. Union of India and Others. [2013 (3) TMI 414 - DELHI HIGH COURT] followed – the purpose of the Explanation is to broaden the base amount on which tax is payable by the company - No new levy is imposed - The tax-base stands widened by the amendment in as much as the amount or amounts set aside as provision for diminution in the value of any asset and debited to the profit and loss account shall be added to the book profit - the amendment does not provide for any new levy of income tax, there is no question of it being struck down on the ground of retrospectivity – the order of the CIT(A) set aside – Decided in favour of Revenue.
|