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2009 (7) TMI 680 - HC - Income TaxBook Profit- A revaluation of the land and building of the assessee company was done by the valuer. Excess depreciation charged by the assessee to the profit and loss account thus the assessing authority added this depreciation in the book profit for calculating the assessee’s actual income. The Commissioner (Appeals) confirm the order of Assessing officer but the Tribunal allow the appeal of assesese and held that the depreciation debited to the P&L A/c could be considered to be in the nature of reserve only when the amount written or retained by way of providing depreciation, the renewal or diminution in value of such assets was in excess of the accounts, which in the opinion of the directors was reasonably for the purpose. Thus it is in the conformity of the accounting norms. Held that- the book of account was duly certified by the authorities under the Company Act and P&L A/c also maintained as per the provisions of company Act. thus there is no infirmity in the order of the Tribunal.
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