Revenue's appeal on book profit addition under s.115JB fails as certified company accounts cannot be recast HC dismissed the Revenue's appeal challenging deletion of addition to book profits under s.115JB. The Assessing Officer had alleged that the assessee ...
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Revenue's appeal on book profit addition under s.115JB fails as certified company accounts cannot be recast
HC dismissed the Revenue's appeal challenging deletion of addition to book profits under s.115JB. The Assessing Officer had alleged that the assessee intentionally prepared an incorrect profit and loss account. HC held that once the company's accounts, including the profit and loss account, are certified under the Companies Act, the Assessing Officer cannot re-examine whether they are prepared in accordance with that Act. Relying on the SC ruling in Apollo Tyres Ltd., HC upheld the Tribunal's deletion of the addition. The appeal was dismissed with no order as to costs.
The High Court Bombay upheld the Income-tax Appellate Tribunal's decision to delete the addition of Rs. 1.98 crores made by the Assessing Officer under section 115JB of the Income-tax Act, 1961. The Tribunal followed the apex court decision in Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273 (SC). The court dismissed the appeal, stating that once accounts are certified under the Companies Act, the Assessing Officer cannot challenge their preparation.
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