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2016 (8) TMI 231 - HC - Income TaxMAT - Addition being excise subsidy received to the book profits, as a reserve according to Explanation (b) to Section 115JB - Held that:- As decided in Apollo Tyres Ltd. Vs. CIT [2002 (5) TMI 5 - SUPREME Court] Assessing Officer while computing the income under section 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 Assessing Officer thereafter has the limited power of making increases 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 except to the extent provided in the Explanation to section 115J. Since the reserve was not created by debiting the profit and loss account, the assessing officer had no power to go behind the accounts. Income-tax Appellate Tribunal is correct in deleting the addition - Decided against the revenue.
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