G.C. Gupta, J. - (1.) The subject matter of challenge in this appeal is an order dated October 13, 2006, passed by the learned Income Tax Appellate Tribunal, "D" Bench, Kolkata, in ITA Nos. 448 and 449(Kol.)/2006, pertaining to the assessment years 1997 -98 and 1998 -99.
(2.) The revenue has come up in appeal. The questions of law formulated at the time of admission of the appeal are as follows: "(1) Whether on the facts and in the circumstances of the case Tribunal was justified in holding that the Assessing Officer was not justified in making the addition, of Rs. 120.39 crores and Rs. 325.15 crores to the book profit in respect of assessment years 1997 -98 and 1998 -99 respectively and directing for deletion of the said amounts while computing the book profit of the assessee for the purpose of Sec. 115J of the Income Tax Act, 1961 by disregarding that said amounts have been claimed by the assessee in earlier year and was already allowed? (2) Whether on the facts and in the circumstances of the case Tribunal was justified in deleting the addition of Rs. 16.2 crores on account of provision for doubtful debt and Rs. 15.36 crores on account of provision for diminution in value of investment by Rs. 15.36 crore while computing book profit of the assessee, by misinterpreting and not correctly appreciating the true scope of explanation (c) below Sec. 115J of the Income Tax Act, 1961 -
(3.) The facts of the case, briefly stated, are as follows.;