https://www.taxtmi.com/caselaws?id=359022 The High Court clarified the interpretation of provisions related to bad and doubtful debts in computing book profits under Section 115JA of the Income Tax Act. It emphasized the distinction between provisions and reserves, stating that provisions must be for unascertained liabilities. The court held that the appellant's provisions for bad and doubtful debts did not qualify as reserves and should not be added back to net profit for book profit computation. The court allowed the appeal, requiring reassessment by the assessing officer on the retrospective impact of Clause (g) in Section 115JA(2). en-us Mon, 09 Apr 2018 00:00:00 +0530 Mon, 23 Apr 2018 06:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359022 The High Court clarified the interpretation of provisions related to bad and doubtful debts in computing book profits under Section 115JA of the Income Tax Act. It emphasized the distinction between provisions and reserves, stating that provisions must be for unascertained liabilities. The court held that the appellant's provisions for bad and doubtful debts did not qualify as reserves and should not be added back to net profit for book profit computation. The court allowed the appeal, requiring reassessment by the assessing officer on the retrospective impact of Clause (g) in Section 115JA(2). Case-Laws Income Tax Mon, 09 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359022