TMI Blog2013 (12) TMI 1415X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the Companies Act - The book profits u/s 115JA, depreciation shall be computed on the same method and rates, which have been adopted for calculating the depreciation for the purpose of preparing the profit and loss account laid before the company at its Annual General Meeting in accordance with the provisions of Section 210 of the Companies Act, 1956 - The department did not bring anything ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal confirmed the appellate order. The appeal was admitted on the following questions of law:- "(1) Whether on the facts and circumstances of the case, the ITAT was legally justified in holding that depreciation computed in accordance with the provisions of Income Tax Act satisfies the requirements of provisions of sub section 2 of section 115 JA of the IT Act ignoring the ratio laid by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hopedics (P) Ltd., 257 ITR 446?" Admittedly, the assessee was liable to pay taxes on the book profits computed in the manner laid down in Section 115 JA, which provides for the preparation of a profit and loss account in accordance with the provisions of Part-II and III of Schedule VI to the Companies Act 1956. The first proviso to sub section (2) of Section 115-JA provides that while preparin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , with regard to requirement of proviso 1 to sub section (2) to Section 115-JA of the Act. In Apollo Tyres Ltd Vs. CIT [255 ITR 273], the Supreme Court held that Company as well as Registrar of Companies is obliged to satisfy that the accounts of the company are maintained in accordance with the requirements of the Companies Act. It was found by the Tribunal that the department did not bring a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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