1337 of 2003.
81,68,516/ as Provision against NPA in the PL Account on three companynts, viz.,
Facts For the sake of companyvenience, we may refer to the facts in the case of M s. Southern Technologies Ltd. Civil Appeal No.
The financial year of the Appellant is July to June and the PL Account and the Balance Sheet are drawn as on 30th June.
For the accounting year ending 31.03.1998, Assessee debited Rs.
The PL Account and Balance Sheet is for shareholders, Reserve Bank of India RBI and Registrar of Companies ROC under the Companies Act, 1956.
However, for IT Act, a separate PL Account is made out for the year ending 31st March and the Balance Sheet as on that date is prepared and submitted to the Assessing Officer AO for companyputing the Total Income under the IT Act, which is number for use of RBI or ROC.
Introduction An interesting question of law which arises for determination in these Civil Appeals filed by Non banking Financial Companies NBFCs for short is Whether the Department is entitled to treat the Provision for NPA, which in terms of RBI Directions 1998 is debited to the PL Account, as income under Section 2 24 of the Income Tax Act, 1961 IT Act for short , while companyputing the profits and gains of the business under Sections 28 to 43D of the IT Act?
H. KAPADIA, J. Leave granted in the Special Leave Petition.
