[aaykarbhavan] Provisions for bad debt to be added back to calculate book profits; reassessment upheld on basis of retro-amendment

Provisions for bad debt to be added back to calculate book profits; reassessment upheld on basis of retro-amendment

May 28, 2014[2014] 45 taxmann.com 31 (Mumbai - Trib.)

IT: In view of retrospective amendment brought by Finance (No.2) Act, 2009 in section 115JB, Assessing Officer was justified in initiating reassessment proceedings taking a view that assessee was required to add 'provision for bad and doubtful debts' to net profit while computing book profits under section 115JB

IT: Since accounting principles on basis of which accounts are prepared under Companies Act, terms 'bad debts' and 'provision for bad and doubtful debts' have distinct meaning, Assessing Officer was justified in making addition of said provision in computing 'book profit' under section 115JB

 

Regards

Prarthana Jalan

__._,_.___

---

Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

---

receive alert on mobile, subscribe to SMS Channel named "aaykarbhavan"
[COST FREE]
SEND "on aaykarbhavan" TO 9870807070 FROM YOUR MOBILE.

To receive the mails from this group send message to aaykarbhavan-subscribe@yahoogroups.com

Visit Your Group

• New Members 1

• Privacy • Unsubscribe • Terms of Use