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TMI Blog2017 (9) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... charged to the Profit and Loss Account for the year ended 31st March 2003. In the balance sheet as on 31st March 2003 of the assessee, it can be seen that the provision of bad and doubtful debts has been reduced from the gross debtors and net sundry debtors are shown as asset in the balance sheet. This amounts to actual write off and would not be hit by clause (i) of the explanation to section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even when such adjustment was provided for by inserting clause (i) to Explanation (1) to Section 115JB w.e.f. 01.04.2001? 2. Subsequently, the Division Bench of this Court by an order dated 23.08.2016 referred the following question for consideration of the Larger Bench: Whether in view of the decision of the Supreme Court in case of Vijaya Bank (supra), judgement in case of Deepak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sset made by the assessee, would be added back for computation of book profit under section 115JB of the Act. However, if this was not a mere provision made by the assessee by merely debiting the Profit and Loss Account and crediting the provision for bad and doubtful debt, but by simultaneously obliterating such provision from its accounts by reducing the corresponding amount from the loans and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er: It is a fact that the assessee had made provision for bad and doubtful debts and the same has been charged to the Profit and Loss Account for the year ended 31st March 2003. In the balance sheet as on 31st March 2003 of the assessee, it can be seen that the provision of bad and doubtful debts has been reduced from the gross debtors and net sundry debotrs are shown as asset in the balanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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