https://www.taxtmi.com/caselaws?id=465781 Whether premium paid on buy-back of shares could be debited to the P&L account for computing book profit under s.115JB was in issue. While the CIT(A) held that the AO cannot tinker with net profit except as permitted in the Explanation to s.115JB, the Tribunal held that the AO must still verify whether the accounts were drawn in accordance with the Companies Act, since Apollo Tyres limits the AO's power but does not permit accounts to be prepared contrary to statutory requirements. As the AO had not identified the relevant Companies Act provisions to justify the disallowance, the matter was remitted to the AO for fresh adjudication after such verification; the Revenue's appeal was allowed for statistical purposes. en-us Tue, 01 Feb 2022 00:00:00 +0530 Thu, 08 Jan 2026 21:13:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465781 Whether premium paid on buy-back of shares could be debited to the P&L account for computing book profit under s.115JB was in issue. While the CIT(A) held that the AO cannot tinker with net profit except as permitted in the Explanation to s.115JB, the Tribunal held that the AO must still verify whether the accounts were drawn in accordance with the Companies Act, since Apollo Tyres limits the AO's power but does not permit accounts to be prepared contrary to statutory requirements. As the AO had not identified the relevant Companies Act provisions to justify the disallowance, the matter was remitted to the AO for fresh adjudication after such verification; the Revenue's appeal was allowed for statistical purposes. Case-Laws Income Tax Tue, 01 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465781