2009 (7) TMI 680

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....tified in holding that the assessee has charged depreciation on the revaluation amounts on assets as per guidance note on treatment of reserve created on revaluation of fixed assets issued by the Institute of Chartered Accountants of India whereas the applicability of the provisions of section 115J of the Income-tax Act, 1961, and clause 7(2) of Part III of Schedule VI to Companies Act is attracted as to ascertain book profit after deducting the amount of depreciation in view of Circular No. 495 dated September 22, 1987 of the Central Board of Direct Taxes reported in [1987] 168 ITR (St.) 87, 110 and Explanation (b) to section 115J(1) of the Income-tax Act?" 2. Briefly stated the facts in a nutshell are as follows: 3. The revaluation ....

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....he purpose of computing the book profit, the Assessing Officer disallowed the depreciation of Rs. 9,95,569 being the difference in depreciation between the revaluation amount of the building and the depreciation chargeable on actual cost. 9. Apollo Tyres v. CIT [2002] 255 ITR 273, the Supreme Court held that while computing the income under section 115J, the Assessing Officer has only the power of examining whether the books of account are certified by the authorities under the Companies Act, as having been maintained in accordance with the said Act. The Assessing Officer thereafter has the limited power of making increase and reductions as provided for in the Explanation to section 115J and does not have the jurisdiction to go behind th....