Allowing the appeal of the assessee the Court held  that the assessee could not have added back the provision for doubtful debts to the net profit for the purpose of computation under section 115JB of the Act in the years prior to insertion of clause (i) as those years had already elapsed and the assessee could not have given effect to the provision, which was inserted at a later point of time. The assessee therefore, could not have added back the provision for bad and doubtful debts to the net profit. Even if the provision for doubtful debts was added back to the net profits, the resultant figure of book profits was still negative and even though the assessee was prevented from adding back the provision for bad and doubtful debts to the net profit due to reasons beyond its control, it had at the first opportunity demonstrated to the authorities that book profits were still negative on adding back the provision for bad and doubtful debts and therefore, no adverse inference could have been drawn against the assessee. The assessee had added the provision for bad and doubtful debts for the assessment years 1998-99 to 2000-01. The assessee was entitled to reduction of bad debts from book profits. (Referred Circular dated June 3, 2010 ([2010] 324 ITR (St.) 293) para 40.2 )  ( AY. 2009-10)