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TMI Blog2018 (3) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... ri.P.Gopinath And Sri.K.John Mathai JUDGMENT Vinod Chandran, J. Assessments for two years, i.e. 1988-89 and 1998- 1999, are before us only on the question of computation of book profits. The question raised is as to whether on computing the book profits, the provision for bad and doubtful debts has to be added on to determine the Minimum Alternate Tax (MAT) payable under Sections 115J and 115 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round to interfere with the orders of the Tribunal, which is in consonance with the decision of the Honourable Supreme Court, though not specifically noticed. We, hence, decide the question for the assessment year 1988-89 in favour of the assessee and against the Revenue. 3. For the assessment year 1998-99, the issue stands on a different footing for reason of the introduction of clause (g) in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets. We have to notice that if the debt is eventually received, then there would be no diminution of assets and as a corollary provision was also not necessary. MAT is a devise available for certain companies whose total income, as computed under the Act, is less than 30% of its book profits; in which event the income chargeable would be 30% of book profits. To check evasion, the Explanation s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Honourable Supreme Court's decision for the year 1998- 99. The legal infirmity noticed has been now removed and it is possible for adding back the provision for bad and doubtful debts, which as per the Honourable Supreme Court's decision results only in diminution of assets. 6. We have also noticed the Notes on Clauses which, with respect to clause 43 of the Bill seeking to amend Section 115 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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