M.J. EXPORTS PVT. LTD. vs JOINT COMM. OF INCOME TAX and ORS.

Judgment text excerpt

2025:BHC-OS:10330-DB k 1/19 402 itxa 407.2003 db os.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.407 OF 2003 M.J. Exports Private Limited a company registered under the Companies Act, 1956 and having its Registered Office at 113, Jolly Maker Chambers No.2, 11th floor, Nariman Point, Mumbai 400 021. ....Appellant Versus 1 The Joint Commissioner of Income Tax Special Range-23 Mumbai, having his office at Aayakar Bhavan, M.K. Marg, Mumbai – 400 020. 2 The Commissioner of Income Tax, Bombay City V, Mumbai, having his address at Aayakar Bhavan, M.K. Marg, Mumbai – 400 020. ....Respondents _________ Mr. Vipul B. Joshi with Ms. Drinkle Hariya and Mr. Prashant Ghumare i/b Mr. Ashok Patil, for the Appellant-Assessee. Mr. Prakash Chhotaray, for Respondent-Revenue. __________ CORAM: ALOK ARADHE, CJ. & SANDEEP V. MARNE, J. RESERVED ON : 03 JULY 2025. PRONOUNCED ON : 09 JULY 2025. k Page No. 1 of 19 k 2/19 402 itxa 407.2003 db os.doc J U D G M E N T : (Per : Sandeep V. Marne, J.) 1. The Assessee has filed the present Appeal under provisions of Section 260A of the Income Tax Act, 1961 (the Act) challenging the judgment and order dated 31 December 2002 passed by the Income Tax Appellate Tribunal, Mumbai Bench, rejecting the Appeal filed by it to the extent of addition of amount of Rs.2,49,73,218/- in the book profit under clause (b) of Explanation to Section 115JA of the Act. The Income Tax Appellate Tribunal (ITAT) has confirmed the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], who in turn had confirmed the order of the Assessing Officer by treating the provision made by the Assessee towards doubtful debt/advances as ‘reserves’ under clause (b) instead of treating the same as ‘provision’ made for meeting