TMI Blog2010 (5) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... (2)The CIT(A) erred in entertaining the additional ground of appeal stating that while computing the book profit under section 115JA, the net profit ought to have been reduced by the amount of withdrawal from provision for doubtful debts and withdrawal from provision for doubtful advances as the assessee did not claim the same in the return of income filed originally and also in the revised return of income filed in response to notice issued under section 148. (3)The CIT(A) erred in not considering the latest legal position as pronounced by the Supreme Court in the case of CIT v. HCL Comnet , upholding the decision of Delhi High Court in the same case reported in 292 ITR 299 (Delhi) where it was held that provision for bad and doubtful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aside the assessment order passed under section 143(3) of the Act with a direction to the Assessing Officer to redo the assessment after re-examining the issues involved and taking into account all the facts on record. Consequent to the order of the CIT under section 263 of the Act dated 26-7-2004, the Assessing Officer passed the present assessment order under section 143(3), read with section 263, of the Act on 20-3-2006 making an addition of Rs. 6,61,951 as long-term capital gain. Aggrieved by this order, the assessee filed an appeal before the CIT(A). During the appellate proceedings, the assessee raised additional ground of appeal stating that while computing the book profit under section 115JA of the Act, the net profit should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he latest legal position as pronounced by the Supreme Court in the case of CIT v. HCL Comnet Systems Services Ltd. [2008] 305 ITR 409 1 upholding the decision of Delhi High Court in the same case in CIT v. HCL Comnet Systems Services Ltd. [2007] 292 ITR 299 2 where it was held that the provision for bad and doubtful debts cannot be added to book profits for the purpose of section 115JA because they represent diminution in value of assets and not a provision for unascertained liability. It is also submitted that the CIT(A) already adjudicated the issue for the order appealed under section 143(3), read with section 147, of the Act and, hence, the same issue is not open for adjudication for the second time. Hence, the CIT(A) is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5JA of the Act in the return of income filed originally and also in the revised return of income filed. It is evident from the assessment records that the original assessment was set aside under section 263 of the Act by the CIT for verification of specific issues which were stated to have been prejudicial to the interest of revenue and the assessment were set aside for examination of those specific points. Hence, the claim of the assessee stating that while computing the book profit under section 115JA of the Act, the net profit ought to have been reduced by the amount which are credited to the P L A/c on account of withdrawals from the provisions made, cannot be entertained at the stage of assessment proceedings pursuant to the order un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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