Reversal of excess provision for doubtful debts deductible in book profit calculation

Brief of the case:

• The Hon’ble Himachal Pradesh High Court in the case of CIT vs. M/s Himachal Pradesh State Industrial Development Corporation Ltd. held that the excess provision for bad and doubtful debts written back by way of credit to Profit and Loss A/c is deductible while arriving at the book profits.
• It is an effective credit to P&L A/c and not merely a book adjustment.

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