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2015 (5) TMI 231 - HC - Income TaxBook Adjustments u/s 115JA - Minimum Alternate Tax (MAT) - Provision for doubtful debts - entire provision represented advances towards sister concern and not trade debts - Held that:- It is very clear from the language of clause (c) of the explanation to Section 115JA(2) of the Act that it only refers to the amount set aside for provisions made for meeting liabilities, which are not ascertained. In the present case, indisputably, the amount of ₹ 20.5 lakhs sought to be added to the book profits, is in fact a provision made in respect of unlikely recovery of an advance made by the respondent to its sister concern. Thus, the same is not in the nature of a liability of the respondent assessee, but is in the nature of a recoverable from its sister concern. Such a provision causes a possible diminution in the value of asset i.e. amount recoverable. Thus there is no debt payable by the respondent assessee, but it is a debt receivable and would not stand covered by clause (c) of the explanation to Section 115JA(2) of the Act. Thus, the issue stands concluded in favour of the respondent by the decision of the Apex Court in HCL Connect System and Services Ltd (2008 (9) TMI 18 - SUPREME COURT) and Rolta India Ltd (2011 (1) TMI 5 - SUPREME COURT OF INDIA) - Decided in favour of the respondent Assessee Interest u/s 234B&C - ITAT deleted addition - Held that:- This question stands concluded in favour of the Revenue, by the decision of the Apex Court in Joint Commissioner of Income Tax Vs. Rolta India Ltd. (2011 (1) TMI 5 - SUPREME COURT OF INDIA). Decided in favour of Revenue.
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