INCOME TAX ACT, 1961

Section 115JB

MAT - Book profit under section 115JB - Assessee not added the provision for bad and doubtful advance as determining book profits -

Assessee-company had debited a sum towards provision for bad and doubtful advances and the same was added while computing income under the normal provision. But while computing book profit as per the provisions of section 115JB, assessee had not added the provision for bad and doubtful advance. Accordingly AO made addition.Held: Issue involved was squarely covered by decision of this Court in the case of CIT v. Kirloskar Systems Limited [(2014) 220 Taxman 1 (Karn) : 2014 TaxPub(DT) 0465 (Karn-HC)] wherein this Court had held that no addition be made to the profit as per the profit and loss account by invoking clause (i) or (c) of Explanation 1 to section 115JB in a case where there was a corresponding reduction of the sum debited to the profit and loss account on account of provision for bad and doubtful debts from the Advances shown in the Balance Sheet of the assessee.