https://www.taxtmi.com/caselaws?id=11824 Whether the AO can adjust "book profit" under s.115J beyond the items permitted in the Explanation when the company's accounts are prepared and certified in accordance with Parts II and III of Sch VI to the Companies Act, 1956 was answered by applying SC precedent. Relying on Apollo Tyres, the HC held the AO's role is confined to verifying that the accounts are duly certified under company law and then making only those increases or reductions expressly allowed by the Explanation; the AO lacks jurisdiction to recompute net profit otherwise. As the accounts were auditor-certified, the impugned adjustment was unlawful, and both questions were decided against the Revenue, disposing of the appeal in favour of the assessee. en-us Thu, 23 Jan 2003 00:00:00 +0530 Fri, 26 Dec 2025 17:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11824 Whether the AO can adjust "book profit" under s.115J beyond the items permitted in the Explanation when the company's accounts are prepared and certified in accordance with Parts II and III of Sch VI to the Companies Act, 1956 was answered by applying SC precedent. Relying on Apollo Tyres, the HC held the AO's role is confined to verifying that the accounts are duly certified under company law and then making only those increases or reductions expressly allowed by the Explanation; the AO lacks jurisdiction to recompute net profit otherwise. As the accounts were auditor-certified, the impugned adjustment was unlawful, and both questions were decided against the Revenue, disposing of the appeal in favour of the assessee. Case-Laws Income Tax Thu, 23 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11824