Case Law Details
Karnataka State Industrial And Infrastructure Development Corporation Ltd. Vs DCIT (Karnataka High Court)
This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) has been preferred by the assessee. The subject matter of the appeal pertains to the Assessment Year 2008-09. The appeal was admitted by a Bench of this Court on 05.12.2017 to consider the following substantial questions of law:
“(i) Whether the Tribunal is justified in law in not holding that the assessment order itself is bad in law and void ab initio when the notice under section 143(2) of the Act which is mandatory for assumption of jurisdiction b y the assessing officer was never issued and served on the assessee in respect of the revised return on the facts and circumstances of the case?
(ii) Whether the Tribunal is justified in law in holding that the appellant is not entitled to the reduction of the amount of Rs.16,11,65,105/- credited to the profit and loss account on account of reversal of provision for bad and doubtful debts under section 115JB of the Act, on the facts and circumstances of the case?
(iii) Without prejudice, whether the Tribunal in law failed to take note of the fact of retrospective amendment b y Finance (No.2) Act, 2009 with effect from 01.04.2001, b y which the computation of book profit as per MAT provisions requires the provision for bad and doubtful debts to be added back and consequently book profits under MAT provisions are to computed for such earlier assessment years in accordance with amended scheme of the Act and further such amended computation ought to form the basis of computation of MAT for the subsequent years and accordingly the authorities below ought to have allowed the reduction of Rs.16,11,65,105/- under proviso to clause (i) of Explanation 1 to section 115JB(2), on the facts and circumstances of the case?
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