https://www.taxtmi.com/caselaws?id=30808 SC held that the assessing officer erred in adding back a provision for doubtful debts to book profit under Clause (c) of the Explanation to Section 115JA. The Court explained Section 115JA applies only to companies and permits only the specified adjustments to profit as shown in the P&L account; adjustments under the Companies Act differ. A provision for doubtful debts reflects diminution in an asset (receivable), not a liability, so Clause (c) of the Explanation does not apply. Accordingly, the AO was not justified in making the add-back. en-us Tue, 23 Sep 2008 00:00:00 +0530 Mon, 10 Nov 2025 14:18:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30808 SC held that the assessing officer erred in adding back a provision for doubtful debts to book profit under Clause (c) of the Explanation to Section 115JA. The Court explained Section 115JA applies only to companies and permits only the specified adjustments to profit as shown in the P&L account; adjustments under the Companies Act differ. A provision for doubtful debts reflects diminution in an asset (receivable), not a liability, so Clause (c) of the Explanation does not apply. Accordingly, the AO was not justified in making the add-back. Case-Laws Income Tax Tue, 23 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30808