https://www.taxtmi.com/caselaws?id=214100 Provision for bad and doubtful debts, when debited to the profit and loss account and reflected by reducing debtors on the assets side of the balance sheet, was treated as a diminution in the value of assets rather than a provision for liability. On that basis, the adjustment under the Explanation to Section 115JB was held inapplicable, following Karnataka High Court authority. The result was that the addition to book profits was not sustainable, and the relief granted to the assessee was upheld. The text also records that the Revenue's attempt to disturb that relief on the same footing failed. en-us Fri, 11 May 2012 00:00:00 +0530 Wed, 13 Apr 2016 12:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214100 Provision for bad and doubtful debts, when debited to the profit and loss account and reflected by reducing debtors on the assets side of the balance sheet, was treated as a diminution in the value of assets rather than a provision for liability. On that basis, the adjustment under the Explanation to Section 115JB was held inapplicable, following Karnataka High Court authority. The result was that the addition to book profits was not sustainable, and the relief granted to the assessee was upheld. The text also records that the Revenue's attempt to disturb that relief on the same footing failed. Case-Laws Income Tax Fri, 11 May 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214100