TMI Blog2012 (9) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... e when it was passed cannot be done by exercise of powers of rectification u/s 154, thus the impugned order of CIT rectifying his order u/s 263 by exercising powers u/s 154 cannot be sustained - in favour of assessee. - ITA No.182(BNG.)/2011 - - - Dated:- 29-6-2012 - SHRI N.V.VASUDEVAN, AND SHRI JASON P BOAZ, JJ. Assessee by : Shri D.S. Vivek, CA Respondent by : Shri Farahat Hussain Qureshi, CIT-II O R D E R PER SHRI N.V.VASUDEVAN, JM: This is an appeal by the assessee against the order dated 23-12-2010 of CIT-III passed u/s 154 of the IT Act rectifying his order dated 31-03-2009 u/s 263 of the IT Act, 1961. 2. The assessee is a company engaged in the business of manufacture of telecom equipments having units at Bang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be said to be provision for liability, because even if the debt is not recoverable no liability can be fastened upon the assessee. The assessee therefore, submitted that the proposed revision u/s 263 should not be made. 5. The CIT after considering the above submissions of the assessee agreed that in the light of the decisoin of the Hon ble Supreme Court in the case of HCL Comnet Systems Services Ltd.,(2008) 305 ITR 409(SC) supra, provision for bad and doubtful debts cannot be added to the net profit as shown in the P L account. The CIT however, was of the view that the amount in question can be added under clause-(b) of Explanation to Sec.115JB of the Act i.e. the amount carried to any reserves by whatever name called. He held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Max India Ltd.,(2007) 295 ITR 282(SC) wherein the Hon ble Supreme Court held that one has to take into account the position of law as it stood when the Commissioner passed the order in exercise of his powers u/s 263 of the Act. 8. The CIT however, passed the impugned order whereby he directed the AO to add a sum of Rs.1,32,94,610/-to the P L account while computing the book profits in view of clause-I of Explanation -1 of sub-sec.1 of sec.115JB as amended by the Finance Act 2009 with retrospective effect from 01-04-2001. 9. Aggrieved by the aforesaid order of CIT the assessee has preferred the present appeal before the Tribunal. 10. We have heard the submissions of the learned Counsel for the assessee and the learned DR. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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