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2014 (11) TMI 107 - BOMBAY HIGH COURTComputation of book profits u/s 11JB – Treatment of provision of bad and doubtful debts – Effect of amendment - Whether the Tribunal was right in holding that the provision of Bad and Doubtful debts cannot be added back while computing 'Book Profits' computed u/s 115JB of the Income Tax Act, contrary to the provisions of clause (i) in Explanation 1 to the section 115JB(2) of the IT Act, inserted retrospectively from the A.Y. 2001-02 – Held that:- Assessee remained absent though duly served - the Assessee invoked section 115JB of the Income Tax Act but the amendment has been omitted from consideration by the Tribunal - the Tribunal rightly proceeded on the footing that the Assessee invoked section 115JB of the Income Tax Act 1961 - it is too late to contend that section 115JB was not the applicable provision - It will not be open for the Assessee to urge contrary to the order of the Court that this section is inapplicable as the bad debts were written of, the amount was treated accordingly in Schedule 'G' to the balance sheet and the debtors' account in the books of the Assessee was credited accordingly - all these are factual matters and ought to have been raised by remaining present before the Court or by pointing out to the Tribunal the relevant materials - The Tribunal did not commit any error in complying with the direction of the Court – thus, section 115JB (Explanation 1 to subsection (2) thereof) was not applicable – Decided against assessee.
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