Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1296 - HC - Income TaxMAT Computation - adjustments to book profit - addition of provision for doubtful debts & advances - Held that:- We notice that the issue is covered by the judgement in case of Commissioner of Income Tax vs. Vodafone Essar Gujarat Ltd. [2017 (9) TMI 51 - GUJARAT HIGH COURT ] as held as in the balance sheet as on 31st March 2003 of the assessee, it can be seen that the provision of bad and doubtful debts has been reduced from the gross debtors and net sundry debtors are shown as asset in the balance sheet. This amounts to actual write off and would not be hit by clause (i) of the explanation to section 115JB.Thus the provision for bad and doubtful debts cannot be termed as a provision for liability but is in the nature of diminution in the value of asset.- Decided in favour of Assessee. MAT Computation - Deduction u/s. 10B for determination of book profit under section 115JB - Held that:- Ajanta Pharma (2010 (9) TMI 8 - SUPREME COURT ) was a case in which very similar issue in the context of the deduction under section 80HHC of the Act came up for consideration for reduction while computing book profit for the purpose of section 115JB of the Act. Section 80HHC of the Act also as is well known recognizes proportionately the income arising from the export turn-over for deduction. In this context the Supreme Court held that while reducing the book profit for the purpose of section 115JB of the Act, it would be the entire profit and not the proportionate profit qualified for deduction under section 80HHC which should be taken into account. The Tribunal was therefore correct in holding that the issue is covered in favour of the assessee.
|