Appeal allowed: conversion treated as manufacture, entitlement under Notification No.56/2002-CE and CENVAT credits reinstated, including returned and ...
ITAT held that the AO lacked jurisdiction to add back a transfer-pricing adjustment to book profits under section 115JB beyond the limited adjustments expressly permitted by the Explanation to that section; absent findings that the profit and loss account was not prepared in accordance with the Companies Act or that incorrect accounting policies, standards or depreciation methods were adopted, the AO cannot go behind the net profit shown in the accounts. The appeal was allowed: the AO is directed to exclude any transfer-pricing adjustment, if it survives, from the computation of book profits under section 115JB.
ITAT held that the AO lacked jurisdiction to add back a transfer-pricing adjustment to book profits under section 115JB beyond the limited adjustments expressly permitted by the Explanation to that section; absent findings that the profit and loss account was not prepared in accordance with the Companies Act or that incorrect accounting policies, standards or depreciation methods were adopted, the AO cannot go behind the net profit shown in the accounts. The appeal was allowed: the AO is directed to exclude any transfer-pricing adjustment, if it survives, from the computation of book profits under section 115JB.
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