https://www.taxtmi.com/caselaws?id=465803 The dominant issue was whether provision for doubtful loans/advances (bad debts) must be added back to "book profit" under s.115JB by applying Explanation 1. The Tribunal held that such provision is not a provision for meeting liabilities other than ascertained liabilities under Explanation 1(c), because it relates to diminution in value of existing receivables and is a provision against an asset, not a liability; hence no add-back was warranted. It further held that Explanation 1(i) was also inapplicable where the provision had been actually adjusted against loans/advances and only the net figure was shown in the accounts, consistent with SC jurisprudence. Revenue's challenge was rejected. en-us Tue, 26 Sep 2023 00:00:00 +0530 Fri, 09 Jan 2026 11:56:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465803 The dominant issue was whether provision for doubtful loans/advances (bad debts) must be added back to "book profit" under s.115JB by applying Explanation 1. The Tribunal held that such provision is not a provision for meeting liabilities other than ascertained liabilities under Explanation 1(c), because it relates to diminution in value of existing receivables and is a provision against an asset, not a liability; hence no add-back was warranted. It further held that Explanation 1(i) was also inapplicable where the provision had been actually adjusted against loans/advances and only the net figure was shown in the accounts, consistent with SC jurisprudence. Revenue's challenge was rejected. Case-Laws Income Tax Tue, 26 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465803