TMI Blog2011 (5) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... side as provision for diminution in the value of any asset shall not reduce the book profits of an assessee. The assessment years involved in the instant appeals are subsequent thereto, accordingly, it is held that the adjustment claimed by the assessee as provision for diminution in value of investment was not tenable and the same would be added in the profit which thereby would enhance the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as "the Tribunal") in I. T. A. No. 2470/Del/2007, relating to the assessment year 2002-03, claiming the following substantial question of law : "Whether, on the facts and circumstances of the case, the hon'ble Income-tax Appellate Tribunal was right in law in upholding the order of the learned Commissioner of Income-tax (Appeals) in deleting the adjustment of Rs. 91,80,973 made by the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) (in short "the CIT(A)") who, vide order dated March 12, 2007, deleted the adjustment of Rs.91,80,973 made by the Assessing Officer to the book profit under section 115JB of the Act holding that the provision for diminution in value of investments is not a provision for liability, much less a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JB(2) of the Act whereby any amount or amounts set aside as provision for diminution in the value of any asset shall not reduce the book profits of an assessee. According to the learned counsel, after the retrospective amendment, the ground on which the claim of the assessee had been accepted by the Commissioner of Income-tax (Appeals) and the Tribunal no longer survives. In other words, it was ur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) the amount or amounts set aside as provision for diminution in the value of any asset, if any amount referred to in clauses (a) to (i) is debited to the profit and loss account, and as reduced by,-. . ." 8. The aforesaid amendment has been made retrospective and is effective from April 1, 2001. The assessment years involved in the instant appeals are subsequent thereto and, therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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