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2018 (6) TMI 1034 - AT - Income TaxRectification of mistake - adjustment made under Section 115JB in respect of provision for doubtful debts - debatable issue - Held that:- In the case of CIT v. Indian Petrochemicals Corpn. Ltd. [2016 (9) TMI 110 - GUJARAT HIGH COURT] rejected the Revenue’s appeal involving a question of adding back provision for doubtful debts in terms of section 115JB, holding that if provision is obliterated from accounts, it would amount to write-off and such actual write-off would not hit by clause(i) of Explanation 1 to section 115JB of the Act. Thus the assessee should succeed on merits - the issue as to whether the provision for doubtful debts debited to Profit and Loss Account and reduced from debtors account at the end of the year tantamount to write-off of debt is highly debatable and this can only be arrived after a long drawn process of reasoning and it is not an obvious and patent mistake apparent on record. Hence, we direct the Assessing Officer to delete the adjustment made under Clause (i) of Explanation 1 to Section 115JB in respect of provision for doubtful debts computed while passing the order u/s. 154 of the Act. - Decided in favour of assessee.
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