Law:

Section:

2007] 292 ITR 299 [2008] 172 TAXMAN 217 (DELHI) HIGH COURT OF DELHI Commissioner of Income-tax, Delhi-IV v. HCL Comnet Systems & Services Ltd. MADAN B. LOKUR AND V.B. GUPTA, JJ. IT APPEAL NO. 56 OF 2007 MAY 18, 2007 Section 115JA of the Income-tax Act, 1961 - Minimum alternate tax - Assessment year 1997-98 - Whether provision for bad and doubtful debts made by assessee in its profit and loss account is an ascertained liability and, therefore, cannot be included in its book profits under section 115JA - Held, yes CASE REFERRED TO Appollo Tyres Ltd. v. CIT [2002] 255 ITR 273/ 122 Taxman 562 (SC) [Para 4]. Ms. P.L. Bansal for the Appellant. Saubhagaya Aggarwal for the Respondent. ORDER 1. The revenue is aggrieved by an order dated 8-2-2006 passed by the Income-tax Department, Delhi Bench 'A' in ITA No. 814/Delhi/03 relevant for the assessment year 1997-98. 2. The assessee had made provisions for bad and doubtful debts in its profit and loss accounts. 3. According to the Assessing Officer this was not an ascertained liability and, therefore, the amount was to be included in the book profits of the assessee in view of the Explanation to section 115JA of the Income-tax Act, 1961. 4. On appeal, the Commissioner of Income-tax (Appeals) was of the view that the amount was an ascertained liability and had been shown as such in the profit and loss account of the assessee. In view of the decision of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492