Retrospective Amendment Requires Addition of Bad Debt Provision to MAT Profits: Madras HC

CIT Vs Mohan Breweries & Distilleries Ltd (Madras High Court) The Madras High Court partly allowed the Revenue’s appeal concerning the computation of book profits under Section 115JA and the filing of audit reports for claiming deductions under Sections 80IA/80HHC of the Income Tax Act. The first issue before the Court was whether the addition of ₹7,49,870 towards bad and doubtful debts should be included while computing book profits under Section 115JA. The Revenue argued that Explanation (g) to Section 115JA(2), inserted by the Finance (No. 2) Act, 2009 with retrospective effect...