TMI Blog2018 (12) TMI 1769X X X X Extracts X X X X X X X X Extracts X X X X ..... d advances of the debtors from the assets side of the balance sheet. In view of the fact that the said issue has to be ascertained by the authority, we do not find it necessary that the said substantial question of law raised requires to be answered. Therefore, the matter stands remitted to the Commissioner of Income Tax (Appeals), with a direction to look into the records and to record a finding as to whether the bad and doubtful debts are reduced from the loan and advances of the debtors from the assets side of the balance sheet and thereafter, to re-compute the income under Section 115JA of the Act. The contention of the assessee if raised withregard to the applicability of Section 115JA of the Act, is kept open for adjudication befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the Tribunal was correct in holding that the provision of ₹ 15 crores representing loss of assets which had not been actually written off cannot be added back when computing the book profits under Section 115JA of the Act when such a provision cannot be allowed as per Section 36(1)(vii) read with Section 36(2) of the Act? 3. The learned Counsel for the appellant contends that the Hon ble Supreme Court in the case of COMMISSIONER OF INCOME TAX Vs. HCL COMNET SYSTEMS SERVICES LTD., reported in (2008) 219 CTR(SC) 222, held that any provision made towards irrecoverability of the debt, cannot be said to be a provision for liability. Therefore, item (c) of the Explanation to Section 115JA, is not attracted to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd loss account and creating a provision for bad and doubtful debt, the assessee correspondingly/simultaneously obliterated the said provision from its accounts by reducing the corresponding amount from loans and advances/debtors on the assets side of the balance sheet. Consequent to the explanation, the assessees are now required, not only to debit the profit and loss account but, simultaneously also reduce the loans and advances from the assets side. Therefore, it was heldthat, if the bad debt or doubtful debt is reduced from the loans and advances of the debtors from the assets side ofthe balance sheet, the Explanation to Section 115 JA or JB is not at all attracted. 5. In the subsequent judgment of this Court in the case of CO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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