9911796707
TMI Blog2011 (8) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals relate to the assessment years 1998-99 and 1999-2000. 4. The assessee M/s. Yashaswi Leasing & Finance Ltd., is in the business of hire purchase and leasing. They filed a return of income declaring the total income as nil. The case was reopened under Section 147. After recording the reasons, a notice under Section 148(2) was issued. The assessee's representative produced the books of account and other document. On examination or the same, it was found that the assessee while computing the income under Section 115JB (MAT) had not added back the provisions for non-performing assets of Rs. 1,45,88,826/-. The assessee was asked to explain his conduct. The assessee replied that in the computation of income under only those provisions are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its bench in the earlier case, held that the Assessing Officer was not justified in adding back the provision for doubtful debts, doubtful investment and doubtful advances for computing book profit under Section 115JB and dismissed the appeal. It is against this order, the present appeals are filed. 5. The learned Counsel appearing for the revenue assailing the impugned order contended that in view of the amendment to Section 115JA by Finance Act (No. 2) of 2009, which came into effect retrospectively from 01.04.1998, the order passed by the Tribunal is illegal and requires to be set aside. 6. Section 115JA deals with deemed income relating to certain companies. Explanation (2) of the said provision defines the book profit as the net prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with the provisions of 36(i)(vii). The copies of sundry debtors for the assessment years 1999-2000, 2000-01 and 2001-02 produced by the assessee discloses that they were forming part of NPA but were not reflected in sundry debtors for the current assessment year but also in the subsequent assessment years with the same sum. Therefore, the said liability is not NPA but the performing assets as they have continued to be forming part of sundry debtors. As the aforesaid doubtful debts were not actually written off under Section 36(i)(vi) from the books the said amount is to be added in arriving at the net income from the book profits. 7. In the light of the aforesaid facts and the change in law, the order passed by the Tribunal as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
