https://www.taxtmi.com/caselaws?id=371275 The High Court clarified the interpretation of provisions for bad debts in book profits for taxation under Section 115JA. The Court emphasized the distinction between reserves and provisions and the need for factual anticipation of liabilities. The Supreme Court further clarified that the provision for bad and doubtful debt can only be added back to net profit under specific conditions. The appeal was allowed in favor of the assessee, remanding the matter for further assessment by the Assessing Officer to consider the applicability of an amendment to Section 115JA with retrospective effect. en-us Mon, 12 Nov 2018 00:00:00 +0530 Wed, 30 Jan 2019 12:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371275 The High Court clarified the interpretation of provisions for bad debts in book profits for taxation under Section 115JA. The Court emphasized the distinction between reserves and provisions and the need for factual anticipation of liabilities. The Supreme Court further clarified that the provision for bad and doubtful debt can only be added back to net profit under specific conditions. The appeal was allowed in favor of the assessee, remanding the matter for further assessment by the Assessing Officer to consider the applicability of an amendment to Section 115JA with retrospective effect. Case-Laws Income Tax Mon, 12 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371275