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2020 (2) TMI 1064 - HC - Income TaxComputing income u/s 115J - Special provisions relating to certain companies - whether while computing income under Section 115J of the 1961 Act, the depreciation is to be allowed only as the provisions of the 1956 Act and not as per the Income Tax Rules, 1962 ? - HELD THAT:- The Supreme Court in Malayala Manorama Co. Ltd. v. Commissioner of Income-Tax [2008 (4) TMI 20 - SUPREME COURT] while dealing with the question: “Whether in respect of a company consistently charging depreciation in its books of account at the rates prescribed in the Income-tax Rules, the Income-tax Officer has jurisdiction under section 115J of the Income-tax Act, 1961, to rework net profits by substituting the rates prescribed in Schedule XIV to the Companies Act, 1956?” allowed the appeal of the assessee and set aside the view taken by Kerala High Court. Learned counsel for the revenue was not able to dispute the above discussed legal position The judgment of the Supreme Court in Apollo Tyres Ltd.'s case [2002 (5) TMI 5 - SUPREME COURT] was found to be not applicable in the facts of that case. The issue related to profit and loss not being determined in accordance with Part II and Part III of Schedule VI to the 1956 Act was the bone of contention whereas in the present case, the controversy is as to whether depreciation can be claimed as per the Rules or has to be restricted as per Schedule VI to the 1956 Act. In view of the decision of this Court in Sona Woollen Mills (P) Ltd.'s case [2006 (10) TMI 99 - PUNJAB AND HARYANA HIGH COURT] the question is answered in favour of the assessee. The matter is remanded back to the Assessing Officer to compute the income under Section 115J of the 1961 Act in accordance with law.
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