9911796707
TMI Blog2018 (3) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Union Parliament by way of amendment which has retrospective effect. This is a permissible legislative exercise and hence there can be no claim raised based on the Honourable Supreme Court’s decision for the year 1998- 99 in Commissioner of Income Tax v. HCL Comnet Systems and Services Ltd.[2008 (9) TMI 18 - SUPREME COURT ]. The legal infirmity noticed has been now removed and it is possible for adding back the provision for bad and doubtful debts, which as per the Honourable Supreme Court’s decision results only in diminution of assets. We, hence, answer the question for the assessment year 1998-99 with respect to Section 115JA in favour of the Revenue and against the assessee. If the remand order has been complied with, then nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence, we do not find any valid ground to interfere with the orders of the Tribunal, which is in consonance with the decision of the Honourable Supreme Court, though not specifically noticed. We, hence, decide the question for the assessment year 1988-89 in favour of the assessee and against the Revenue. 3. For the assessment year 1998-99, the issue stands on a different footing for reason of the introduction of clause (g) in the Explanation to Section 115JA. Clause (g) reads as under :- The amount or amounts set aside as provision for diminution in the value of any asset . The said amendment also has retrospective effect from 1.4.1998 and hence is applicable from the assessment year 1998-99. 4. The learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court was supplied by the Union Parliament by way of amendment which has retrospective effect. This is a permissible legislative exercise and hence there can be no claim raised based on the Honourable Supreme Court s decision for the year 1998- 99. The legal infirmity noticed has been now removed and it is possible for adding back the provision for bad and doubtful debts, which as per the Honourable Supreme Court s decision results only in diminution of assets. 6. We have also noticed the Notes on Clauses which, with respect to clause 43 of the Bill seeking to amend Section 115JA, said so: It is proposed to amend the said Section so as to provide that any provision for diminution in the value of any asset will also be in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
