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2014 (5) TMI 433 - AT - Income TaxDetermination of book profit u/s 115JB of the Act – Minimum alternate tax (MAT) - changed the method of depreciation from straight line method to written down value method - Held that:- The assessee has changed the method of depreciation from straight line method to written down value method - Deprecation has been calculated in accordance with the new method from the date of assets coming into use - depreciation for the current year was higher and profit was lower by the same amount – Relying upon Kinetic Motor Co. Ltd. Versus Deputy Commissioner of Income-Tax [2003 (1) TMI 47 - BOMBAY High Court] - under the Companies Act both the straight line method and written down value method are recognized - once the amount of depreciation actually debited to the profit and loss account was certified by the auditor, it was not permissible for the AO to make book adjustment - depreciation actually debited to the profit and loss account was certified by the auditors - it is not permissible for the AO to make book adjustments – the AO is directed to delete the addition on account of adjustments made u/s 115JB of the Act – Decided in favour of Assessee.
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