Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1262 - HC - Income TaxReassessment on the basis of the retrospective amendment effected in Explanation-1 to Section 115JB - disallowance of “Provision for Bad and Doubtful Debt” for the purpose of computing Book Profits under section 115JB - HELD THAT:- “Provision for Bad and Doubtful Debt” was clearly a deductible amount for the purpose of Section 115JA of the Act. This position of law was undone only by the Finance Amendment Act, 2009 with retrospective effect from 1 April 2001. But the fact remains that the said amendment in law was effected in the year 2009 and it was not available on the date when the reassessment notice was issued in the present case on 31 March 2008. Similar issue was dealt with by the Division Bench of the Bombay High Court in the case of Rallis India Ltd. [2019 (5) TMI 572 - ALLAHABAD HIGH COURT] held that subsequent to the decision of the Hon’ble Supreme Court in HCL Comnet Systems & Services Ltd. [2008 (9) TMI 18 - SUPREME COURT] the Parliament stepped in to amend Explanation (1) to Section 115JB by the Finance Act, 2009. But that amendment would not be available for the Assessing Authority to exercise the power to reopen the assessment. - Decided in favour of assessee.
|