https://www.taxtmi.com/caselaws?id=472588 Clause (i) of Explanation 1 to section 115JB requires a provision for diminution in the value of an asset to be added back to net profit for book-profit computation. The Schedule VI definition of "provision" covers amounts written off or retained for asset diminution; therefore, a provision for doubtful debts remains such a provision even when shown as a reduction from sundry debtors on the asset side of the balance sheet. Principles governing an actual write-off for ordinary deduction purposes do not apply to this distinct computation. Failure to examine the required add-back may render an assessment erroneous and prejudicial to Revenue, permitting revision under section 263. en-us Fri, 27 Apr 2012 00:00:00 +0530 Fri, 16 Oct 2026 18:16:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472588 Clause (i) of Explanation 1 to section 115JB requires a provision for diminution in the value of an asset to be added back to net profit for book-profit computation. The Schedule VI definition of "provision" covers amounts written off or retained for asset diminution; therefore, a provision for doubtful debts remains such a provision even when shown as a reduction from sundry debtors on the asset side of the balance sheet. Principles governing an actual write-off for ordinary deduction purposes do not apply to this distinct computation. Failure to examine the required add-back may render an assessment erroneous and prejudicial to Revenue, permitting revision under section 263. Case-Laws Income Tax Fri, 27 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472588