TMI Blog2008 (9) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent : Mr Aseem Mowar CORAM:- HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE RAJIV SHAKDHER BADAR DURREZ AHMED, J (ORAL) 1. This appeal by the revenue is directed against the order dated 15.02.2008 passed by the Income Tax Appellate Tribunal in ITA 775/Del/2006 pertaining to the assessment year 1998-99. The assessee had preferred the appeal before the Tribunal being aggrieved by the order passed by the Commissioner Income Tax under Section 263 of the Income Tax Act, 1961. The main ground urged before the Tribunal was that the Commissioner had erred in giving a direction to the Assessing Officer to re-compute the income under Section 115 JA (wrongly indicated as Section 115JB in the impugned order) considering the impact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT. In the result, ground No. 2 is allowed." 3. The Supreme Court in Apollo Tyres Ltd (supra) had categorically held as under:- "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 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Apollo Tyres Ltd as well as Covai Maruthi paper and Board (P) Ltd. (supra) cannot therefore be faulted. The Tribunal concluded as under:- "While the AO would be well within his jurisdiction to compute depreciation us 32 on the rates provided in appendix-I to I.T. Rules, 1962, for computing total income under other provisions of the act, he cannot disturb the book profit, which has been certified to be drawn in the Profit and Loss Account as per the companies act. Therefore, we are of the view that the order passed by the AO was not erroneous, which is one of the pre conditions for invoking jurisdiction u/s 263 of the act. Since it was not erroneous, it could not have been termed to be prejudicial to the interest of the revenue. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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