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2014 (4) TMI 558 - HC - Income TaxInclusion of Pre-operative expenses – Re-computation u/s 115JB of the Act - Whether the Tribunal is right in directing the AO not to include the preoperative interest expenses while re-computing the book profit u/s.115JB of the Act – Held that:- The Tribunal had rightly held that the decision in Apollo Tyres Limited [2002 (5) TMI 5 - SUPREME Court] followed - while assessing a company for income tax under section 115J the correctness of the P&L A/c. prepared by the assessee company and certified by the statutory auditors of the company as having been prepared in accordance with the requirements of Part II and III of Scheduled VI to the Companies Act cannot be examined by the Assessing Officer. The AO does not have the jurisdiction to go behind the net profit shown in the P&L A/c. except to the extent provided in the Explanation to section 115J - for the purpose of section 115J of the Act, only those adjustments, which are specified in the explanation to section 115J can be made from the book profits and depreciation not being one of them and further the accounts of the company having been prepared in accordance with Schedule VI to the Companies Act, the AO was in error in disallowing the depreciation as claimed by the company – thus, no substantial question of law arises for consideration – Decided against Revenue.
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