Provision for doubtful debts/advances cannot be treated as reserve while calculating book profit

M.J. Exports Private Limited Vs JCIT (Bombay High Court)

Bombay High Court held that amount indicated in profit and loss account as provision for doubtful debts/ advances cannot be treated as ‘reserve’ and therefore, the book profit could not be increased by the said amount under clause (b) of the Explanation to section 115JA of the Income Tax Act.

Facts- The Assessee has filed the present Appeal under provisions of Section 260A of the Income Tax Act, 1961 challenging the judgment and order dated 31 December 2002 passed by ITAT, rejecting the Appeal file

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