C.n.ramachandran Nair, J v. Hcl Connect

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR& THE HONOURABLE MR. JUSTICE K.M.SURENDRA MOHAN THURSDAY, THE 7TH OCTOBER 2010 / 15TH ASWINA 1932 ITA.No. 1737 of 2009() ---------------------- ITA.16/2007 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT --------------------- THE COMMISSIONER OF INCOME TAX, THRISSUR. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/ APPELLANT ------------------------ M/S.SOUTH INDIAN BANK LTD., SIB HOUSE, THRISSUR. ADV. SRI.P.BALAKRISHNAN THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 07/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ.-------------------------------- I.T.A.No.1737 OF 2009 ---------------------------------- Dated this the 7[th] day of October, 2010 J U D G M E N T ~~~~~~~~~~~ C.N.Ramachandran Nair, J. Of the two questions raised, the issue pertains to the levyof interest under Section 234D is covered by our judgmentrendered today in I.T.A.No.1714/2009. The next questionraised is with regard to the provision for bad debt disallowed inthe computation of book profit. The issue is decided by theSupreme court by judgment reported inCIT vs. HCL Connect Systems and Services [305 ITR 409]. However, the standingcounsel submitted that an explanation namely clause (g) wasintroduced to Section 115JA with effect from 1.4.98 by FinanceAct 2009. We feel the matter should be considered by theassessing officer in the light of the judgment of the SupremeCourt and the amendment introduced later. Since theassessee's counsel stated that the amendment is not applicable I.T.A.No.1737/2009 to provision for bad debt, the assessing officer is directed todecide the matter afresh after giving an opportunity to theassessee. The appeal is disposed of as above. (C.N.RAMACHANDRAN NAIR, JUDGE) (K.SURENDRA MOHAN, JUDGE) ps