Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 380 - AT - Income TaxAdjustment of book profit by increasing it by provision for bad and doubtful debts - Held that:- Clause (i) covers the amount debited to the profit and loss account which are set aside as provision for diminution in the value of any assets. Provision of bad and doubtful debts also results diminution in the value of its assets i.e. debt. Therefore in our view the provision for bad and doubtful debts are required to be added to book profit as per clause (i) of explanation [1] to subsection [2] of section 115JB of the Act. In view of this we confirm the decision of CIT (A) on this count. Taxing the amount of interest - as business income OR income from other sources - Held that:- Details of such interest income was not furnished by AR of the assessee and same was no such details have been furnished before us. In the assessment order also, AD has not mentioned the reason for changing the head of bank interest income from +-Business Income -offered by assessee to =income from other sources '. Therefore in the interest of justice we set aside this ground of appeal of the assessee back to the file of AD to decide the same on merit after affording reasonable opportunity of hearing to assessee.
|