1 itxa472-10 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.472 OF 2010 The Commissioner of Income Tax-3 ..Appellant. V/s. M/s. Barmag India Pvt. Ltd. Now known as M/s. Oerlikon Textiles India Ltd. ..Respondent. Mr. Vimal Gupta for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND SMT. R.P.SONDURBALDOTA JJ. DATED : 14TH JUNE, 2011 P.C. :- 1. Heard learned counsel for the appellant. None present for the respondent, though served. 2. In this case, the Tribunal following the decision of the Apex Court in the case of CIT V/s. Comnet Systems & Services Ltd. (2008) 305 ITR 409 (S.C.) held that the provisions for bad debt to cover up the probable diminution in the value of the asset was not a provision for liability and, therefore, it could not be added back for computation of 2 itxa472-10 book profit u/s. 115JA of the Income Tax Act, 1961. 3. By Finance Act, 2009 Section 115JA has been amended with retrospective effect from 1-4-1998 whereby the amounts set aside as a provision for diminution in the value of any asset are liable to be included in the computation of book profit under section 115JA of the Act. In view of the retrospective amendment to Section 115JA, we set aside the order of the ITAT dated 25/6/2009 and restore the matter back to the file of the ITAT for fresh decision in the light of the retrospectively amended Section 115JA of the Act. 4. The appeal is disposed off accordingly with no order as to costs. (SMT. R.P.SONDURBALDOTA, J.) (J.P. DEVADHAR, J.)