TMI Blog2013 (12) TMI 866X X X X Extracts X X X X X X X X Extracts X X X X ..... ies Act - the Assessing Officer thereafter has limited powers of making increases and reductions as provided for in the Explanation to the said section - the Assessing Officer does not have the jurisdiction to go beyond the net profits shown in the profit and loss account, except to the extent provided in the Explanation to Section 115J of the Income-tax Act - the accounts maintained by the assessee are certified by the auditors – Thus, the book adjustment made by the Assessing Officer being contrary and liable to be set aside - Under the Companies Act, 1956, both straight line method and written down value method are recognized – Decided against the revenue. - Income Tax Appeal No. - 182 of 2000 - - - Dated:- 28-8-2012 - Hon'ble Sunil Ambwani And Hon'ble Aditya Nath Mittal,JJ. For the Petitioner : A. N. Mahajan,A. Kumar,B. J. Agarwal,D. Awasthi,G. Krishna,R. K. Upadhyay,S. Chopra For the Respondent : Rohit Agarwal,R. S. Agrawal ORDER 1. We have heard Sri Dhananjai Awasthi for the appellant-department. Shri Bhoopesh Jain and Sri R.S. Agarwal appears for the respondent-assessee. 2. This appeal was admitted on the following questions of law:- "(1) Whether on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrong in law in building what relief u/s 80-I is to be allowed only with reference to the remaining eligible profit after relief u/s 80-HH has already been allowed. In this regard, both the parties are agreed that the issue is now squarely covered by decision of the Hon'ble High Court of Madhya Pradesh in the case of J.P. Tobacco Products P Ltd Vs. C.I.T (1997) 140 CTR 329. In that case, it was held that the provision of law is clear that in so far as benefit of section 80 I is concerned, it has to be granted on the gross total income and not on the income reduced by the amount allowed u/s 80 HH. It was, therefore, held that for purposes of computing relief u/s 80 I, relief granted u/s 80 HH cannot be deducted from the gross total income. Respectfully, following the above decision, we direct the A.O. to recompute the allowable deduction on the above basis." 5. We find that the question Nos. (1) and (2) are covered by decision of this Court in Commissioner of Income Tax Vs. Lucky Laboratories Ltd [(2006) 284 ITR 435 (All). It was rightly pointed out by the learned counsel for the assessee that the view taken by this Court in Lucky Laboratories Ltd (Supra) was in conformity with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecial leave petitions against the judgments of different High Courts following the view taken by the Madhya Pradesh High Court, we do not find any merit in this appeal. The Department having accepted the view taken in those judgments cannot be permitted to take a contrary view in the present case involving the same point. Accordingly, the civil appeal is dismissed. No costs." 6. On the third question, regarding change in method of charging depreciation from straight line to written down value method, the question, as rightly pointed out by the learned counsel for the respondent-assessee, is also covered by the decision of the Supreme Court in Apollo Tyres Vs. CIT [255 ITR 273]. In Malayalam Manorama Vs. CIT [300 ITR 251 (SC)], the Supreme Court following the ratio of the judgment in Apollo Tyres (Supra) held as follows:- "In Apollo Tyres (supra), this Court examined the object of introducing section 115J in the 1961 Act. The Court relied on the budget speech of the then Hon'ble Finance Minister of India made in the Parliament while introducing the said section. The relevant portion of the speech is reproduced as under: "It is only fair and proper that the prosperous should pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Companies Act, the Court observed that it is difficult to accept the argument of the Revenue that it is still open to the Assessing Officer to rescrutinize this account and satisfy himself that these accounts have been maintained in accordance with the provisions of the Companies Act. The Court categorically held that: "... the Assessing Officer while computing the income under Section 115-J 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 115-J" ... ... ... ... ... ... Mr. Vellapally has also drawn our attention to the division bench judgment of the Bombay High Court in Kinetic Motors v. Deputy Commissioner of Income Tax (2003) 262 ITR 33 and submitted that in this case the Bombay High Court re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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