https://www.taxtmi.com/caselaws?id=757416 The ITAT Bangalore held that PCIT's revision order u/s 263 directing AO to add provision for doubtful debts to book profit under section 115JB was bad in law. The tribunal found that when provision for bad debts is debited to P&L account and simultaneously reduced from loans and advances in balance sheet, it constitutes actual write-off rather than mere provision. Relying on SC decisions in HCL Comnet Systems and Vijaya Bank Ltd., and Karnataka HC in Kirloskar Systems Ltd., the tribunal concluded such write-offs are not covered by clause (i) of explanation to section 115JB. The assessee's appeal was allowed. en-us Wed, 21 Aug 2024 00:00:00 +0530 Sat, 24 Aug 2024 09:05:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757416 The ITAT Bangalore held that PCIT's revision order u/s 263 directing AO to add provision for doubtful debts to book profit under section 115JB was bad in law. The tribunal found that when provision for bad debts is debited to P&L account and simultaneously reduced from loans and advances in balance sheet, it constitutes actual write-off rather than mere provision. Relying on SC decisions in HCL Comnet Systems and Vijaya Bank Ltd., and Karnataka HC in Kirloskar Systems Ltd., the tribunal concluded such write-offs are not covered by clause (i) of explanation to section 115JB. The assessee's appeal was allowed. Case-Laws Income Tax Wed, 21 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757416