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TMI Blog2014 (8) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... spective amendment, vide Explanation (g) to section 115JA with effect from April 1, 1998, applicable to the assessment year 1998-99. The decision in the case of CIT v. HCL Comnet Systems and Services Ltd. reported in [2008 (9) TMI 18 - SUPREME COURT ] will not come to the aid of the assessee in view of the above amendment with retrospective effect as per the Explanatory Notes to the Finance (No. 2) Act, 2009, vide the Central Board of Direct Taxes Circulars mentioned above. - Decided against assessee. - T.C (A).No.1366 of 2007 - - - Dated:- 26-8-2014 - MR. R. SUDHAKAR AND MR. G.M. AKBAR ALI, JJ. For the Appellant : Mr. T.S. Ravi Kumar For the Respondent : Mr. P.B. Sampath kumar JUDGEMENT R. Sudhakar J.- Appeal fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility at all but only an adjustment to set off money lost on account of bad debts. It was also sub mitted that the work 'liability' has been defined in the publication of the Chartered Accountant Institute of India under the name 'Guidance note on terms used in financial statements' in which liability is defined in paragraph 9.02 as 'the financial obligation of an enterprise other than owner's funds'. 2.4 The appellant's submissions have been considered. I agree with the contention of the appellant. From the guidance note quoted by the appellant it is clear that liability should be amounts obtained from third parties similar to the owner's funds. Hence, write off of an amount due from a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of law : Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in deleting the disallowance of ₹ 13,62,497 being the provision bad and doubtful debts from the computation of book profits under section 115JA of the Income-tax Act, 1961 ? 7. On considering the rival arguments, we propose to modify the question of law as follows : Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that, while computing the book profits under section 115JA/115JB, the provision for bad and doubtful debts could not be added back, without taking into account the amendment made by the Finance (No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed by a judg ment of this court dated June 28, 2012, in T. C. (A.) Nos. 2511 of 2006 dated October 30, 2012, in which, one of us was a member (K. Ravi chandrabaabu, J.) wherein the Division Bench of this court held as follows : '3. As far as the third question of law is concerned, learned standing counsel appearing for the Revenue, placed before this court a decision of the Delhi High Court reported in CIT v. ILPEA Paramount P. Ltd. [2011] 336 ITR 54 (Delhi), which considered the effect of insertion of clause (g) in the Explanation contained in section 115JA(2) of the Income-tax Act, 1961, with retrospective effect from April 1, 1998. As regards the provision for gratuity, it held that it could not be added to the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to buttress his plea as above. The circular reads as follows : 40.4. Applicability.-The amendment to section 115JA has been made applicable with retrospective effect from April 1, 1998, and will accordingly apply in relation to the assessment year 1998-99 and sub sequent years. The amendment to section 115JB has been made applicable with retrospective effect from April 1, 2001, and will accordingly apply in relation to the assessment year 2001-02 and sub sequent years. 12. The objection raised by the learned counsel for the respondent-assessee that this amendment would come into effect for the assessment year 1999- 2000 cannot be sustained as evidenced from the reading of section 115JA itself, i.e., deemed income r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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