Thursday, October 13, 2011

Special companies

Provision made towards irrecoverability of the debt cannot be said to be a provision for liability and is not required to be added back for the purpose of s 115J — as held by KolHC in ICI India Limited v CIT — In favour of: The assessee.


The AO, while computing the income under s 115J, does not have the jurisdiction to question the correctness of the P&L account prepared by the company and certified by the statutory auditors of the company.


Decided on: 29 September 2011.

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