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2019 (7) TMI 790 - AT - Income TaxMAT - Addition of writeback of Provision for NPA in the computation of book profit u/s 115JB - assessee being NBFC company is stated to be engaged in the business of credit card operations and financing payments through credit cards and debit card management - ‘Provisions of card receivables’ was not added back in the computation of Book Profits u/s 115JB in earlier years i.e. A.Ys. 2007-08 to 2010-11 when the provision was made - scope of amendment by the Finance (No.2) Act, 2009 HELD THAT:- It is undisputed fact that the assessee had filed return of income for AY 2007-08 much before the date of the said amendment and therefore, the said amendment could not be given effect to by filing revised return of income u/s 139(5) which already expired on 31/03/2009. It is also an undisputed fact that the write-back of ₹ 363.37 Lacs has been made out of provisions of ₹ 3449.82 Lacs made in AY 2007-08. Nothing on record controvert the aforesaid fact. We find that in AY 2007-08, the assessee had book losses of ₹ 4601.10 Lacs and even after adding back the said provisions as envisaged by the amendment, the resultant figure would have still been a negative figure and the assessee would not have any liability to pay tax u/s 115JB. Therefore, we find substantial force in these arguments raised by Ld. AR before us. As evident from assessment order dated 27/01/2014 of immediately preceding AY 2011-12 that similar treatment given by the assessee to write-back of ₹ 1899.12 Lacs in that year has been accepted by the revenue since no computation of Book Profit has been made in the assessment order. Therefore, following the principle of consistency, the assessee’s claim was to be accepted, there being no change in factual matrix. Assessee was entitled for deduction of writeback while computing Book Profits u/s 115JB for the impugned AY. Ground No. 1 stand allowed.
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