The High Court relying on Supreme Court’s decisions in case of State Bank of Patiala v. CIT (1996) 219 ITR 706 ( SC)and CIT v. HCL Comnet Systems & Services Ltd. ( 2008) 305 ITR 409 (SC) held that while computing book profits provision for unascertained liability only could be disallowed by invoking Section 115JA(1)(c) of the Act. (AY. 2000-2001)
L.R.N. Finance Ltd. v. ACIT (2018) 255 Taxman 262 (Mad.)(HC)
S. 115JA : Book profit – Adjustment of provision for bad and doubtful debts [under Clause (c) of S. 115JA(1)] is permitted only when such provision is made for an unascertained liability.