2011 (8) TMI 765

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....ppeals relate to the assessment years 1998-99 and 1999-2000. 4. The assessee M/s. Yashaswi Leasing & Finance Ltd., is in the business of hire purchase and leasing. They filed a return of income declaring the total income as nil. The case was reopened under Section 147. After recording the reasons, a notice under Section 148(2) was issued. The assessee's representative produced the books of account and other document. On examination or the same, it was found that the assessee while computing the income under Section 115JB (MAT) had not added back the provisions for non-performing assets of Rs. 1,45,88,826/-. The assessee was asked to explain his conduct. The assessee replied that in the computation of income under only those provisions are ....

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....ts bench in the earlier case, held that the Assessing Officer was not justified in adding back the provision for doubtful debts, doubtful investment and doubtful advances for computing book profit under Section 115JB and dismissed the appeal. It is against this order, the present appeals are filed. 5. The learned Counsel appearing for the revenue assailing the impugned order contended that in view of the amendment to Section 115JA by Finance Act (No. 2) of 2009, which came into effect retrospectively from 01.04.1998, the order passed by the Tribunal is illegal and requires to be set aside. 6. Section 115JA deals with deemed income relating to certain companies. Explanation (2) of the said provision defines the book profit as the net profi....