TMI Blog2004 (7) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... the machinery was put to use and worked for 9 days only? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that full depreciation is allowable without considering the Note 4 under Schedule XIV of the Companies Act, whereby it has been clearly stated that depreciation allowable from the date of installation and usage only? 3. Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in allowing full depreciation for whole year while computing income and profits which would not disclose true and fair picture for the accounting period as contemplated under section 211 of the Companies Act? 2.1 Precisely, the assessee-company M/s. Thiru Arooran Sugars Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31-10-1994, the assessee preferred an appeal before the Income-tax Appellate Tribunal, Madras. But, the Tribunal by an Order dated 25-7-2003, allowed the appeal and set aside the order passed by the Commissioner of Income-tax (Appeals) dated 31-10-1994. Hence, the present appeal by the revenue, raising three substantial questions of law, referred supra. 3. All the three substantial questions of law boil out as to whether the assessee is entitled to depreciation only for a period of usage, after installing the additions to fixed assets or for the whole year during which the additions to fixed assets were installed. 4.1 Section 211 of the Companies Act contemplates that every company shall file a balance sheet giving true and fair view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses and reductions as provided for in the Explanation to the said section. To put it differently, the Assessing Officer does not have the jurisdiction to go behind the net profit shown in the profit and loss account. [emphasis supplied] 4.4 In the light of the ratio laid down in Apollo Tyres Ltd. s case (supra) we have no hesitation to hold that once the balance sheet is certified by the authorities under the Companies Act, the Assessing Officer has no jurisdiction to go into the net profit shown in the profit and loss account as reflexed in the balance sheet. 4.5 The core contention of the appellant that the assessee is entitled for depreciation only from the date of installation of usage in respect of additions to fixed assets, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
