TaxTMI 
TaxTMI 
2016 (7) TMI 1323
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....ppellant had filed its return of income for the assessment year 1998 1999, on 30/11/1998. In the said assessment year, a sum of Rs. 21,13,705/- was over due, from defaulting customers/borrowers, for more than a period of six months. According to the appellant, since these monies were overdue (NPA/ Non-performing assets), the appellant did not show this as part of income. Assessing Officer, completed the assessment, on 23/3/2001, by which a sum of Rs. 21,13,705/- was added as income and therefore, it was brought to tax. Assessing Officer, further completed the assessment by which he further added Lease Equalisation Reserve of Rs. 42,55,549/- and Special Depreciation Reserve of Rs. 54,76,039/- to the book profits offered under Section 115JA o....
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....esent appeal, raising the following substantial questions of law:- "1. Whether in facts and circumstances of the case, the Tribunal was correct in upholding the order of the CIT (A) in disallowing the provisions for non performing assets which was debited to the Profit and Loss Account? 2. Whether in facts and circumstances of the case, the Tribunal was right in treating the sum of Rs. 21,13,705/- as income when the same was not actually received by the appellant? 3. Whether in facts and circumstances of the case, the Tribunal was right in adding the over dues as income on a notional basis? 4. Whether in facts and circumstances of the case, the tribunal was right in concluding that once income is accrued it is liable to be offered t....
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.....Swaminathan, learned counsel for the Revenue submitted that in TVS Finance's case, this Court relied on a decision of the Hon'ble Supreme Court in Commissioner of Income Tax IV, Delhi Vs. HCL Comnet Systems and Services Limited reported in (2008) 14 SCC 470 = 305 ITR 409 (SC). However, subsequently, with Explanation to Section 115JA, Finance (No.2) Act, 2009 introduced an amendment (g) to the explanation, to the second provisio, which reads that the amount or amounts set aside as provision for diminution in the value of any asset. He further submitted that the said amendment has been introduced retrospectively with effect from 1/4/1998. 11. Having regard to the retrospective effect of the amendment from 1/4/1998, both the learned ....