MAT on provision for card receivables (NPA) written back by NBFC

Bobcards Limited Vs ACIT (ITAT Mumbai) So far as the nature of provisions of card receivables is concerned, we find that Hon’ble Apex Court has succinctly carved out the fine distinction between debts payable by the assessee vis-à-vis debts receivable by the assessee in the cited case of CIT Vs. HCL Commet Systems & Services Ltd. [305 ITR 409] in the following manner: – As stated above, the said Explanation has provided six items, i.e., Item Nos.(a) to (f) which if debited to the profit and loss account can be added back to the net profit for computing the book profit. In this cas...