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Clarification on 115JB, Income Tax

Issue Id: - 2486
Dated: 15-12-2010
By:- JOHN SHANNEL

Clarification on 115JB


  • Contents
We made provision for Doubtful debts & Provision for stock for the Ay 10-11 and disallowed the Expenses in MAT & also in Normal Taxation. In AY 11-12 the above said provision has been written off so whether the written off expenses is allowed in MAT and in Normal Taxation. Please clarify.

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Showing Replies 1 to 2 of 2 Records

Page: 1


1 Dated: 15-12-2010
By:- CA Rachit Agarwal

MAT is the tax based on the book profit. Hence now writing off the the provisions for doubtful debts would not impact the book profit.

Hence in our opinion the same cannot be allowed to be deducted from the book profit.


2 Dated: 16-12-2010
By:- DEV KUMAR KOTHARI

For stock valuation there should be lower valuation and not a provision. Anyway both provisions can be considered as provision for diminution in the value of asset to which Caluse (i) under head , as reduced by  apply.

Accordingly amount withdrawn from such provision and credited to P & l a/c can be considered as item (i) under head as reduced by --.


Please read again the provisions of section 115JB with reference to full facts.


Page: 1

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