TMI Blog2020 (2) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... are certifies 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. See APOLLO TYRES LTD. VERSUS COMMISSIONER OF INCOME TAX [ 2002 (5) TMI 5 - SUPREME COURT] Question is answered in favour of the assessee. The matter is remanded back to the Assessing Officer to compute the income under Section 115J of the 1961 Act in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect interpretation of Section 115-J of I.T. Act for determining the Book Profit , the appellant had option to adopt depreciation rates prescribed in the Income Tax Rules, 1962 in preference to the rates prescribed in Schedule XIV of the Companies Act, 1956. (e) Whether in the facts and circumstances of the case, the meaning of Book Profit appearing in Section 115-J of the I.T. Act, I.T.A.T. is legally correct in view of booklet on Taxation of Companies issued by Directorate of Income Tax, R. S. P and Public Relations, New Delhi? (f) Whether Set-Off of business loss or unabsorbed depreciation whichever is less under Clause iv of explanation to sub section (IA) of Section 115-J can only be in respect of depreciation already pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by us in ITA No. 134 of 2000-M/s Gita Forging (P) Ltd. v. Commissioner of Income Tax Patiala and another, decided on 5.2.2020 in favour of assessee. With regard to question (b), learned counsel for the appellant argued that the matter is covered by the decision of the Supreme Court in Apollo Tyres Ltd. v. Commissioner of Income-tax, Kochi, 2002 (255) ITR 273. Learned counsel for the revenue was not in a position to dispute that the Supreme Court in Apollo Tyres Ltd.'s case (supra) dealt with the issue involved while dealing with question (i) framed in that case. Question (i) before the Supreme Court, brief facts as noted for the said question and the conclusion are reproduced below: Question (i) (i) Can an Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the tribunal was not accepted by the High Court which held that the assessing officer has the authority to examine whether the accounts of the company have been maintained in accordance with the requirement of Sub-section (1A) of Section 115-J and in that process if he finds that the accounts of the company are not in accordance with the provisions of the Companies Act, he could make the necessary changes before proceeding to assess the company for tax under the Explanation to Section 115-J of the IT Act. Conclusion: Therefore, we are of the opinion, the assessing officer while computing the income under Section 115-J has only the power of examining whether the books of account are certifies by the authorities under the Compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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