TMI Blog2013 (12) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... INDIA LTD [2011 (8) TMI 766 - KARNATAKA HIGH COURT] - Adjustment of provision for bad and doubtful debts is reduced from the loans and advances or the debtors from the assets side of the balance sheet - The assessee is now required not only to debit the P and L account but simultaneously also reduce the loans and advances or the debtors from the assets side of the balance sheet – Decided against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 - - - Dated:- 28-10-2013 - N Kumar And Rathnakala, JJ. For the Appellant : Sri K V Aravind, Adv For the Respondent : Sri A Shankar M Lava, Adv JUDGEMENT: PER : N Kumar This appeal is preferred by the Revenue raising the following substantial questions of law:- a. Whether the Tribunal was correct in holding that provision for diminution in value of assets debited to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidence to substantiate that they were ascertained liabilities and recorded a perverse finding ? d. Whether the Tribunal was correct in holding that interest u/s.234B and 234C of the Act cannot be levied for default in payment of advance tax in the case wherein Section 115JB of the Act is invoked? e. Whether the Tribunal was correct in holding that though the assessee assessed u/s. 115JB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation the assessee is now required not only to debit the P and L account but simultaneously also reduce the loans and advances or the debtors from the assets side of the balance sheet to the extent of the corresponding amount so that, at the end of the year, the amount of loans and advances/debtors is shown as net of the provisions for the impugned bad debt. This Court in the case of The Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proper deduction while working out the profits and gains of his business, regard being had to the accepted principles of commercial practice and accountancy. It is not as if such deduction is permissible only in case of amounts actually expended or paid. The liability would be an accrued liability and would not convert into a conditional one merely because the liability was to be discharged at a f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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