https://www.taxtmi.com/caselaws?id=465760 The dominant issue was whether, while computing book profit under s.115JB, the AO could adjust net profit beyond the items specified in the Explanation where the audited accounts were qualified as not prepared in accordance with the Companies Act. Relying on SC in Apollo Tyres, the Tribunal held that the AO's limited power applies only when accounts are prepared under the Companies Act and duly certified thereunder; where auditors issue a qualified report showing non-compliance and understatement of profit (by not crediting gains from settlement of trade contracts/derivatives and impermissibly setting off brought-forward losses), the assessee cannot claim such immunity and the AO may bring the omitted gain to tax under s.115JB. Revenue's appeal was allowed and the AO's order restored. en-us Mon, 29 Aug 2022 00:00:00 +0530 Wed, 07 Jan 2026 20:50:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465760 The dominant issue was whether, while computing book profit under s.115JB, the AO could adjust net profit beyond the items specified in the Explanation where the audited accounts were qualified as not prepared in accordance with the Companies Act. Relying on SC in Apollo Tyres, the Tribunal held that the AO's limited power applies only when accounts are prepared under the Companies Act and duly certified thereunder; where auditors issue a qualified report showing non-compliance and understatement of profit (by not crediting gains from settlement of trade contracts/derivatives and impermissibly setting off brought-forward losses), the assessee cannot claim such immunity and the AO may bring the omitted gain to tax under s.115JB. Revenue's appeal was allowed and the AO's order restored. Case-Laws Income Tax Mon, 29 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465760