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2014 (11) TMI 896 - HC - Income TaxComputation of MAT - Additional depreciation debited Retrospective effect in change in the method of providing depreciation - Whether the Tribunal was right in deleting the addition made by the AO to the book profit on account of additional depreciation debited in the accounts for the earlier years because of change in the method of providing depreciation retrospectively Held that:- Following the decision in DCIT Versus Farmson Pharmaceuticals Guj Ltd. [2011 (4) TMI 1037 - Gujarat High Court] - the short fall in the depreciation, was charged to the Profit & Loss Account, which was computed in accordance with the provisions of the Companies Act in Apollo Tyres Ltd. vs. Commissioner of Income Tax [2002 (5) TMI 5 - SUPREME Court] it has been held that the AO, while computing the income u/s 115J, has only the power of examining whether the books of account are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act - The AO has the limited power to make increases and reductions as provided for in the Explanation to the section - the AO does not have the jurisdiction to go behind the net profits shown in the Profit & Loss account except to the extent provided in the Explanation to section 115J - subsection (1A) of section 115J does not empower the AO to embark upon a fresh enquiry in regard to the entries made in the books of account of the company the Tribunal was right in law in upholding the deletion of addition made by the AO to the book profit on account of additional depreciation debited in the books for the earlier years because of change in the method of providing depreciation retrospectively Decided against revenue.
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