AI Structured Summary
Not yet generated for this judgment
Judgment
N. Kumar, J.—This appeal is preferred by the revenue challenging the order passed by the Tribunal pertaining to the assessment year 1999 - 2000. The substantial questions of law which arise for consideration in this appeal are as under:
Whether the Appellate Tribunal is correct in holding that provision for non-performing assets of Rs. 5,88,29,114/- made by the assessee cannot be added to the book profits of the company as per the explanation (c) to Section 115JA(2) of the Act for purposes of computing income u/s 115JA of the Act?
Whether non-performing asset is a provision made towards asset or can it be considered as provision made for meeting the liability more particularly when nomenclature itself suggests it as an asset?
The tribunal following the earlier judgment of the tribunal in ITA No. 703/Bang/2000 for the assessment year 1997 - 98 allowed the assessee''s claim and dismissed the appeal preferred by the revenue. It is against the said order, this appeal is filed.
The order passed by the tribunal in ITA No. 703/Bang/2000 was the subject matter of the appeal in ITA No. 343/2001. This Court by order dated 31.10.2007, following the judgment of the Apex Court in the case of Apollo Tyres Ltd. Vs. Commissioner of Income Tax, Kochi, , has set aside the said order and remanded the matter back to the assessing authority for fresh consideration. For the reasons set out in the said order, the impugned order also requires to be set aside for the same reasons. The matter is remanded back for fresh consideration in accordance with law. In the light of the aforesaid judgment as well as the judgment of the Apex Court the following order is passed:
ORDER
a. The appeal is allowed.
b. The impugned order is set aside.
c. The entire matter is remanded back to the assessing authority for fresh consideration in accordance with law.
In that view of the matter, we have declined to answer the substantial questions of law.