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2010 (2) TMI 45 - HC - Income TaxAdjustment u/s 115JA - provision for doubtful debts, provision for doubtful advances and provision for gratuity – held that - the issue relating to provision for gratuity stands decided against the revenue and in favour of the assessee by virtue of a decision of this Court in CIT v. Hewlett Packard India [2008 - TMI - 3577 - HIGH COURT OF DELHI] - The questions with regard to the provision for doubtful debts and provision for doubtful advances have to be answered in favour of the revenue and against the assessee because of the retrospective amendment introduced in Section 115JA of the said Act. By virtue of Finance (No.2) Act, 2009, clause (g) has been inserted in the Explanation contained in Section 115JA (2). By virtue of the said amendment, the amount or amounts set aside as provision for diminution in the value of any asset, is specifically mentioned. The Supreme Court in the case of CIT v. HCL Comnet Systems & Services: [2008 -TMI - 30808 - SUPREME COURT] held that provision for doubtful debts and doubtful advances did not fall within clause (c) of the said Explanation inasmuch as they amounted to provision in respect of diminution in the value of asset. – Consequent to retrospective amendement, the question insofar as it relates to provision for doubtful debts and provision for doubtful advances, requires to be answered in favour of the revenue and against the assessee
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