SCOPE OF ADDING BACK PROVISION FOR DOUBTFUL DEBTS TO NET PRO
Last updated: 26 September 2008
Court :
SUPREME COURT OF INDIA
Brief :
SCOPE OF ADDING BACK PROVISION FOR DOUBTFUL DEBTS TO NET PROFIT UNDER SECTION 115JA OF IT ACT, 1961
RATIO DECIDENDI
The provision for bad and doubtful debt can be added back to the net profit only if Item (c) of the Explanation to section 115JA stands attracted; when the debt is the amount receivable by the assessee-company and not any liability payable by it, any provision made towards irrecoverability of the debt cannot be said to a provision for liability and therefore, Item (c) of the Explanation is not attracted in such a case
Citation :
CIT
v.
HCL Comnet Systems & Service Ltd.
CIVIL APPEAL NO. 5800 of 2008
September 23, 2008
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CHEZHIYAN
Published in Income Tax
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