TMI Blog2021 (3) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s liability and hence an allowable expenditure as held in earlier years. On the contrary, if the expenditure was reimbursable in nature, it would materially alter the assessee's claim of deduction. The submissions made by Ld. AR also do not throw much light on this fact and the observation made by Ld. CIT(A) has remained unaddressed. Therefore, with a view to bring on record clear facts and to dispel the concerns raised by Ld. DR, we restore the matter back to the file of Ld. CIT(A) with a direction to ascertain the correct facts. The assessee is directed to provide the requisite details / information. MAT computation u/s 115JB - Write-back of provision for Card NPA - While computing Book Profits u/s. 115JB, the assessee red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,30,95,394/- being provision for Card receivable written back while computing book profit under Section 115JB and Commissioner of Income Tax (Appeals)-4, Mumbai erred in confirming the same. 2. The learned counsel for assessee, at the outset, submitted that both the issues are covered in assessee s favor by the decision of this Tribunal in assessee s own case. The copies of the orders have been placed on record. The Ld. CIT-DR, however, defended the position taken by Ld. AO. 3. We have carefully heard the rival submissions and perused the order of lower authorities and also the earlier decisions of Tribunal in assessee s own case. Our adjudication to the subject matter of appeal would be as given in succeeding paragraphs. 4. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. 5.2 Upon further appeal, Ld. CIT(A), relying upon appellate order for 2015-16 denied deduction of TDS paid for VISA Card payments but allowed deduction of TDS paid for Master card payments. Aggrieved, the assessee is in further appeal before us. 5.3 We find that assessee assailed the appellate order for AY 2015-16 before this Tribunal vide ITA No.6724/Mum/2018 order dated 05/02/2020 wherein the matter was adjudicated as under:- 5. After careful consideration of factual matrix as enumerated hereinabove, we find the dispute to be in narrow compass. We find that primary reason to confirm the disallowance on VISA card is the fact that the terms of Master Card and VISA cards have been found to be at variance. As noted by Ld, CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te-back of provision for Card NPA 6.1 While computing Book Profits u/s. 115JB, the assessee reduced provision of card receivables written-back amounting to ₹ 19.30 Crores. However, the provision for card receivable, in earlier years, was not added back to compute Book Profits for AYs 2007-08 to 2010-11. Therefore, Ld.AO opined that reduction in Book Profits would not be available to the assessee in this year. 6.2 The assessee submitted that write-back represents provisions of NPA made in earlier years following RBI guidelines. The company made provision for NPA during financial years 2006-07 to 2009-10. The same was voluntarily disallowed against the net profit under normal tax provisions in earlier assessment years and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 409] in the following manner: - As stated above, the said Explanation has provided six items, i.e., Item Nos.(a) to (f) which if debited to the profit and loss account can be added back to the net profit for computing the book profit. In this case, we are concerned with Item No. (c) which refers to the provision for bad and doubtful debt. The provision for bad and doubtful debt can be added back to the net profit only if Item (c) stands attracted. Item (c) deals with amount(s) set aside as provision made for meeting liabilities, other than ascertained liabilities. The assessee's case would, therefore, fall within the ambit of Item (c) only if the amount is set aside as provision; the provision is made for meeting a liability; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 115JA of the 1961 Act. With a view to overcome the same, clause (i) was added to Explanation-1 to Section 115JB with retrospective effect from AY 2001-02 vide Finance (No.2) Act, 2009 which provided that the Book Profits should be increase by the amount set aside as provision for diminution in the value of any asset. It is undisputed fact that the assessee had filed return of income for AY 2007-08 much before the date of the said amendment and therefore, the said amendment could not be given effect to by filing revised return of income u/s 139(5) which already expired on 31/03/2009. 5.2 Proceedings further, it is also an undisputed fact that the write-back of ₹ 363.37 Lacs has been made out of provisions of ₹ 34 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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