TMI Blog2005 (6) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, while computing the book profits under section 115JA the assessee had deducted depreciation amounting to Rs. 1,05,76,176 from the book profits as depicted in the audited accounts. The Assessing Officer held that since the assessee had not claimed depreciation in the profit and loss account, the claim of depreciation of the assessee can only be rejected. On assessee's appeal, the CIT(A) accepted the assessee's plea and made the order impugned against in this present appeal. 3. The learned counsel of the assessee has averred that section 115JA provides that the book profit is to be in accordance with provisions of Part II and Part III of Schedule VI to Companies Act. He further stated that the aforesaid adjustment of depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own by the final accounts after the same have been certified by the auditors and adopted in the annual general meeting and filed with the Registrar of Companies except the specific adjustments permitted by Explanation to section 115JA of the Income-tax Act. From the facts of the present case, we find that the adjustment of depreciation in the book profit claimed by the assessee does not come under the realm of aforesaid explanation. 6. The learned counsel for the assessee in his expatiation tried to distinguish the facts of this case from the aforesaid decision. He averred that in this case the auditors of the company in their remark in the audit report had commented that the depreciation amount has not been provided to arrive at the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of balance sheet and profit and loss account to be laid down before the Annual General Meeting and the penal consequences of not laying down the final accounts at the Annual General Meeting. It does not deal with depreciation to be charged. Hence by this scheme of law no tinkering in the book profit is envisaged on account of depreciation. 9. The learned counsel of the assessee's plea's are further found devoid of any dollop of cogency by a perusal of Schedule VI, Part II of the Companies Act, 1956 dealing with requirement as to profit and loss account. It is mentioned in clause 3(iv) that if no provision of depreciation is made the fact that no depreciation has been made shall be stated. Hence Schedule VI does not specify that depre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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