9911796707
TMI Blog1980 (4) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... erve for bad and doubtful debts should not be treated as a reserve for the purpose of capital computation. The CIT (Appeals) has accepted the assessee's claim for treating it as a reserve for the purpose of capital computation on the basis of the decision of the Bombay High Court in the case of Golden Tobacco Co. Ltd. (1). The objection of the Revenue is that it has not accepted the decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int also. 4. The third common point in the asst. yr. 1971-72 to 1974-75 is that the dividends proposed in respect of the accounting year out of the general reserve should be deducted from capital for the purpose of assessment to sur-tax. On this point also there are two decisions of the Madras High Court in favour of the assessee, namely, Madras Motor General Insurance Co. Ltd.(3) and Indian M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and did not express any opinion on that. According to the Revenue the information supplied by the audit party was only the fact of the existence of the statutory provisions which the ITO had apparently overlooked. The question of reopening is not of much importance in the asst. yrs. 1971-72 and 1972-73 where the additions made have been deleted on merits. It assumes importance only in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a question of law by the Audit party or a change of opinion on the part of the ITO which resulted in the reassessment with regard to this item. We are also of the opinion that the CIT (A) was right in following the decision of the Bombay High Court since it is the latest statement of law on the point distinguishing the earlier decision. We, therefore, uphold the order of the CIT (A) on this poi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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