TaxTMI 
TaxTMI 
2014 (11) TMI 896
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....er, after assessment scrutiny, the total taxable income was determined at Rs. 35,69,270/. On appeal, the CIT(A) deleted the addition of book profit and directed the A.O to recompute the book profit and thereby, allowed the appeal in part. 3. The order of CIT(A) was challenged before the Appellate Tribunal. Vide order dated 03.06.2000, the Appellate Tribunal allowed the appeal filed by Revenue in part. Being aggrieved by the same, the present appeal has been preferred. 4. We have heard learned counsel for both the sides. Identical issue came up for our consideration in Tax Appeal No.390 of 1999, which came to be disposed of vide judgment and order dated 07.04.2011. For ready reference, the said judgment is reproduced hereunder; "1. In this appeal under section 260A of the Income Tax Act, 1961 (the Act), the appellant revenue has challenged order dated 7th May, 1999 made by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A' in ITA No.4681/Ahd/1992 for assessment year 198990. 2. At the time of admitting the appeal, this Court had, by an order dated ....
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....ntention of the assessee and directed the Assessing Officer to recompute the book profit without disallowing the additional claim for depreciation. The Commissioner (Appeals) found that the change in method adopted by the assessee was one which was permitted by the Accounting Standards prescribed and was not barred by the provisions of the Companies Act or by the provisions of section 115J of the Act. He, accordingly, deleted the addition made by the Assessing Officer. Being aggrieved, the revenue carried the matter in appeal before the Tribunal but did not succeed. 4. Heard Mr. K.M. Parikh, learned standing counsel for the appellant and Mr. M.J. Shah, learned advocate appearing on behalf of the respondent assessee. 5. Mr. M.J. Shah, learned advocate for the respondent assessee drew the attention of the Court to the impugned order of the Tribunal. It was pointed out that before the Tribunal, on behalf of the assessee, the decision of the Tribunal in the case of Deputy Commissioner of Income Tax (Assessment), SR2, Baroda vs. M/s. Rubamin (P) Ltd. in....
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....ccount are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act. The Assessing Officer, thereafter, has the limited power to make increases and reductions as provided for in the Explanation to the said section. To put it differently, the Assessing Officer does not have the jurisdiction to go behind the net profits shown in the Profit & Loss account except to the extent provided in the Explanation to section 115J. The Court held that subsection (1A) of section 115J does not empower the Assessing Officer to embark upon a fresh enquiry in regard to the entries made in the books of account of the company. The said subsection, as a matter of fact, mandates the Company to maintain its accounts in accordance with the requirements of the Companies Act which mandate is bodily lifted from the Companies Act into the Income Tax Act for the limited purpose of making the said accounts so maintained as a basis for computing the company's income for levy of income tax. The Court also held that there cannot be two incomes, one for the purpose of the Companies Act and another for the purpose of income tax maintained under th....
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....s the liability for payment of interest for default in payment of advance tax if the assessee is liable to pay advance tax under section 208 and has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than 90 per cent of the assessed tax, then he is liable to pay simple interest at the rate of two per cent for every month to the date of determination of total income under section 143(1) and, where the regular assessment is made, to the date of such regular assessment on the amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid has fallen short of the assessed tax. Under the Explanation, "assessed tax" means the tax on the total income as declared in the return or the tax on the total income determined under section 143(1) or on regular assessment, as reduced by the amount of tax deducted or collected at source in accordance with the provisions of Chapter XVII. Under section 234C also, if there is liability to pay advance tax under section 208 and if there is failure to pay such tax or if it is not paid in instalments prescribed in the section, then the liability for intere....