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2014 (11) TMI 49 - HC - Income TaxMinimum Alternate Tax - Entitlement to adopt the rates of depreciation – Adoption of rate of depreciation for arriving book profits u/s 115J(1)(a) - Assessee claimed depreciation at the rates as provided under the Income Tax Rules instead of adopting the rates as prescribed in Parts-2 and 3 of Schedule VI of the Companies Act, 1956 - Held that:- It is well settled in Apollo Tyres Ltd., Vs. C.I.T. [2002 (5) TMI 5 - SUPREME Court] that it is impermissible for the AO to redraw the profit and loss account as long as the same is prepared in terms of the Companies Act, and the same is required to be adopted for the purpose of calculating the profits u/s 115-J of the Act - the AO while computing the income u/s 115-J has only the power of examining whether the books of account are certified by the authorities under the Companies Act as having been property maintained in accordance with the Companies Act - the AO does not have the jurisdiction to go behind the net profit shown in the profit and loss account except to the extent provided in the Explanation to Section 115-J – thus, the AO had committed an error in redrawing the profit and loss account by making changes by adding depreciation debited to profit and loss account by the assessee, which is impermissible – thus, the order of the order of the Tribunal is set aside – Decided in favour of assessee.
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