2007 (5) TMI 203

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..... 1997-98. The assessee had made provisions for bad and doubtful debts in its profit and loss account. According to the Assessing Officer this was not an ascertained liability and, therefore, the amount was to be included in the book profits of the assessee in view of the Explanation to section 115JA of the Income-tax Act, 1961. On appeal, the Commissioner of Income-tax (Appeals) was of the vi .....

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..... t section. We are of the view that there is no reason why a bad and doubtful debt claimed by the assessee cannot be treated as an ascertained liability. Learned counsel for the Revenue submits that the debts that are bad and doubtful should have been written off. If that be so, then clause (c) of the Explanation to section 115JA of the Act would become completely inoperative and otiose, which is .....

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