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2017 (1) TMI 1151 - BOMBAY HIGH COURTMAT - Book adjustment u/s 115JB - adjustments made by AO while working out book profit u/s. 115JB in respect of arrears of depreciation - ITAT deleted adjustment - Held that:- The Revenue is unable to point out any flaw / error in the impugned order of the Tribunal. We find that the issue as framed stands concluded by the decision of the Apex Court in Apollo Tyres Ltd (2002 (5) TMI 5 - SUPREME Court ) and the decision of this Court in Kinetic Motor Co. Ltd (2003 (1) TMI 47 - BOMBAY High Court ). The above decisions have held that it is not permissible to the Assessing Officer to tinker with the profit declared in the audited account maintained in terms of Schedule VI of the Companies Act. Whether Tribunal was correct in deleting the adjustments made by the Assessing Officer in respect of arrears of depreciation for A.Y. 2000-01 and 2001-02 while working out the book profit u/s. 115JB without appreciating the fact that clause (iia) of Explanation 1 to Section 115JB which provides for reduction of the depreciation debited to the P & L A/c. was inserted only in the Finance Act 2006 w.e.f. 1.4.2007 and is, therefore, not applicable to the year under consideration? - Held that:- This issue was not urged before the authorities under the Act. Therefore in view of the decision of this Court in CIT vs. Tata Chemicals Ltd. [2002 (4) TMI 42 - BOMBAY High Court] it cannot be urged before this Court for the first time. On the aforesaid facts above we see no reason to entertain this question. In any case, the question as framed proceeds on a fundamentally erroneous basis that the Tribunal has allowed the claim of the respondent-assessee by relying upon clause (iia) of explanation to Section 115JB of the Act. Therefore the grievance of the Revenue that the above clause was inserted only in Finance Act, 2006 w.e.f. 1st April, 2007 and is not applicable for the year under consideration does not carry the issue in the present facts any further.
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