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2021 (8) TMI 111 - AT - Income TaxMAT computation u/s 115JB - Addition of provision for bad and doubtful debts’ in the computation of book profit u/s 115JB - CIT-A deleted the addition - HELD THAT:- In this case though in the computation of income filed the provision for bad and doubtful debts had been added back to the total income, however, the Sundry Debtors on the asset side of the Balance Sheet have been reduced by an equivalent amount and since such amount of provision having not been transferred to the liability side of the Balance sheet as “current Liabilities and provisions”, such provision for bad and doubtful debt is allowable u/s. 36(1)(vi) of the Act. Therefore, in the light of the aforesaid Hon’ble Supreme Court decision in the case of Vijaya Bank[2010 (4) TMI 46 - SUPREME COURT] the Ld. CIT(A) has rightly allowed the claim of the assessee. And since it has been found that it was actual write off of bad debts and not provision as erroneously noted by AO, clause (c) or (i) of Explanation (1) to sub-section (2) of section 115JB of the Act will not be attracted. As relying on THE PEERLESS GENERAL FINANCE & INVESTMENT CO. LTD.[2020 (12) TMI 1249 - ITAT KOLKATA] CIT(A) rightly allowed the claim of assessee since the said provision was an actual write off and therefore, it does not attract clause (i) or (c) of Explanation (1) of sub-section (2) of section 115JB of the Act. Therefore, we find no infirmity in the order passed by the Ld. CIT(A) which is confirmed. Appeal of revenue is dismissed.
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