CASE LAWS DETAILS
DECIDED BY: ITAT, NEW DELHI, `B’ BENCH,
IN THE CASE OF: DCM Shriram Consolidated Ltd. Vs. ACIT, APPEAL NO: ITA No. 4299/Del/2009, DECIDED ON- April 23, 2010
9. We have considered the rival contentions in the light of material placed on record vis-à-vis amendment brought in provisions of section 115JAB by the Finance Act, 2009 by insertion of new clause (i). According to the amended provision, amount set aside as provision for diminution in value of any asset is required to be added in the books profit. Clause (i) has been inserted retrospectively with effect from 1-4-2001 meaning thereby from Assessment year 2001-02, provision for bad debts is to be added in the book profit while computing book profit under section 115JB. The ration laid down by the Supreme Court in the case of HCL Com met System & Services Ltd. -305 ITR 409 is no more applicable in view of the amended provisions brought in the statute with retrospective effect. The relevant assessment year under consideration is assessment year 2005-06 to which amended provisions are applicable. Recently Hon’ble Delhi High Court in the case of CIT Vs. Ilpea Paramount (P.) Ltd.– 2010 –TIOL-155-HC-Del-IT, vide order dated 18-02-2010 after considering the decision of the Hon’ble Supreme Court in the case of HCL Com net System & Services Ltd. (supra) held that amendment brought in section 115JA was brought with retrospective effect, accordingly provision for doubtful debts are nothing but provision for diminution in the value of the asset covered under clause (g) of the said Explanation. It was accordingly held that such provision is required to be added while computing book profit under section 115JA. Similarly, amendment in section 115JB was also brought by the same Finance Act w.e.f. AY 2001- 02, therefore respectfully following the order of the Hon’ble Jurisdictional High Court, we do not find any infirmity in the orders of the lower authorities.