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 7th 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 levy of interest under Section 234D is covered by our judgment rendered today in I.T.A.No.1714/2009. The next question raised is with regard to the provision for bad debt disallowed in the computation of book profit. The issue is decided by the Supreme court by judgment reported in CIT vs. HCL Connect Systems and Services [305 ITR 409]. However, the standing counsel submitted that an explanation namely clause (g) was introduced to Section 115JA with effect from 1.4.98 by Finance Act 2009. We feel the matter should be considered by the assessing officer in the light of the judgment of the Supreme Court and the amendment introduced later. Since the assessee's counsel stated that the amendment is not applicable I.T.A.No.1737/2009 2 to provision for bad debt, the assessing officer is directed to decide the matter afresh after giving an opportunity to the assessee. The appeal is disposed of as above. (C.N.RAMACHANDRAN NAIR, JUDGE) (K.SURENDRA MOHAN, JUDGE) ps