2003 (9) TMI 43 - BOMBAY HIGH COURT

Addition made to closing stock - Assessing Officer took the realisable value of obsolete items at 50 per cent. of the cost and accordingly added back Rs. 15,15,656 – Held that Tribunal is not right in law in upholding the addition made to closing stock by the Assessing Officer - As per the circular issued by the Company Law Board, it was necessary for the assessee to rework the depreciation. As a result of which increased profits to the tune of Rs. 81,33,667 had to be written back by way of adjustment in the profit and loss account. - Tribunal was not justified in directing to exclude the amount of Rs. 81,33,667 from the book profits as defined in section 32AB(3) – Further, Tribunal was not right in law in holding that interest from customers, sales tax set-off and other refunds, claims, etc., do not form part of the business profit for calculating deduction under section 80HHC