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2012 (9) TMI 64 - AT - Income TaxReassessment proceedings - income has not been correctly computed u/s. 115JB - brought forward depreciation was not be set off along with the current years depreciation against the allowable business profits before allowing exemption u/s. 10B - Held that:- As decided in Apollo Tyres Ltd. Versus CIT [2002 (5) TMI 5 - SUPREME COURT] the Assessing Officer while assessing a company for income tax under section 115J of the Act, cannot question the correctness of the profit and loss account prepared by the assessee company and certified by the statutory auditors of the company as having been prepared in accordance with the requirements of Parts II and III of Schedule VI of the Companies Act. For computing deduction u/s 10B the decision of the Tribunal in assessee’s own case is relevant that in the context of provisions of section 115J the book profit estimate under section 115J has to be made on the basis of depreciation calculated in accordance with Schedule VI to the Companies Act, 1956 and not as per the provisions of the I.T. Act. As for the purpose of computation under the normal provision of the Act the case laws relied upon by the Ld. Departmental Representative are applicable and accordingly,that the for the purpose of normal computation of income, Assessing Officer’s action in this case has to be sustained - partly in favour of Revenue.
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