Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1614 - AT - Income TaxBook profit u/s 115JB - Revenue recognition from reimbursement of specified taxes - accounts were prepared as per Part-Il & Part-Ill of Schedule-VI of the Companies Act, 1956? - HELD THAT:- We have gone through the decision in the case of Rain Commodities Ltd. [2010 (7) TMI 794 - ITAT HYDERABAD] which has considered the decision of Hon'ble Supreme Court in the case of Apollo Tyres [2002 (5) TMI 5 - SUPREME COURT] and held that it was open to the AO to see whether the accounts were prepared as per PartIl & Part-Ill of Schedule-6 of the Companies Act, 1956. In this case , it is an admitted fact that assessee's accounts have not been prepared as per the requirements of Part-Il & Part-Ill of Schedule-VI of the Companies Act, 1956, which is reflected in the Auditors statement which is reproduced.. Thus, on such issues, as held by the Special Bench of Hyderabad, it was open to the AO to see whether the accounts were prepared as per Part-Il & Part-Ill of Schedule-VI of the Companies Act, 1956. Since, the AO has found that the assessee did not follow the Accounting Standard properly, it had not recognised the income properly and it had not prepared its financial statements as per Part II and Part III of Schedule VI to the Companies Act, 1956 and made the impugned additions and the assessee has not challenged such findings with relevant material, its pleas are untenable and hence rejected. The income which has to be assessed in a particular year can not be assessed in any other year. Therefore, the impugned items of income are assessable in this assessment year and hence the additions made u/s 115 JB are also confirmed.- Decided in favour of assessee.
|