https://www.taxtmi.com/caselaws?id=774616 The Bombay HC ruled in favor of the assessee regarding computation of book profit under Section 115JA for MAT purposes. The court held that provision for doubtful debts/advances cannot be added back to book profit under clause (b) as "reserves" for assessment year 1997-98. The court noted that clause (g) of Explanation to Section 115JA, which specifically covers provisions for diminution in asset value, was introduced only with effect from April 1, 1998. Since this clause was absent during the relevant assessment year, and the Legislature later found it necessary to add a separate provision, the amount could not be treated as reserves under clause (b). Orders of AO, CIT(A), and ITAT adding back the provision amount were set aside. en-us Wed, 09 Jul 2025 00:00:00 +0530 Fri, 11 Jul 2025 08:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774616 The Bombay HC ruled in favor of the assessee regarding computation of book profit under Section 115JA for MAT purposes. The court held that provision for doubtful debts/advances cannot be added back to book profit under clause (b) as "reserves" for assessment year 1997-98. The court noted that clause (g) of Explanation to Section 115JA, which specifically covers provisions for diminution in asset value, was introduced only with effect from April 1, 1998. Since this clause was absent during the relevant assessment year, and the Legislature later found it necessary to add a separate provision, the amount could not be treated as reserves under clause (b). Orders of AO, CIT(A), and ITAT adding back the provision amount were set aside. Case-Laws Income Tax Wed, 09 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774616