TaxTMI 
TaxTMI 
2016 (6) TMI 738
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....section 115JB of the Income-tax Act. 3. For the assessment year 2006-07 the assessee had electronically filed their return of income on November 30, 2006 showing nil income. The case was processed under section 143(1) of the Income-tax Act and selected for scrutiny. Notice was issued to the assessee who filed copy of their audited balance-sheet and other documents. As per the return filed electronically, the assessee who were in furniture business had shown total income at Rs. 24,15,43,513 (sale of furniture at Rs. 65,02,788 plus other miscellaneous income at Rs. 23,50,40,725) and calculated net profit at Rs. 7,95,62,134. However as per the audited profit and loss account submitted, the assessee disclosed a net loss of Rs. 4,08,72,066. Thus they were asked to explain the variation in the return submitted electronically and the audited accounts. 4. The assessee explained that since this was the first year in which return of income was filed electronically, the person who was entrusted with the work had inadvertently punched the figure of miscellaneous income at Rs. 23,50,40,725 (instead of Rs. 11,46,06,525) and hence the assessee had later filed a corrected copy of the return.....
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....nate tax under section 115JB of the Income-tax Act and noted that the accounts furnished by the assessee are audited and certified, in accordance with Parts II and III of Schedule VI to the Companies Act, 1956. Hence it was opined that the figures of the said return should be accepted and there should be no tinkering with the duly audited accounts, for computation of tax under section 115JB of the Income-tax Act. On the basis of such conclusion, the assessment of the minimum alternate tax by taking into account the book profit under section 115JB of the Income-tax Act by the Assessing Officer was held to be unjustified and hence the assessment to tax was quashed. 9. We have heard the submission made by the respective counsel for the appellant and the respondent. 10. Special provision for payment of tax is made by section 115JB of the Income-tax Act and in such cases where the tax liability of a company is less than 7.5 per cent. (10 per cent. for the assessment year 2007-08) of the book profit, such book profit shall be deemed to be the total income of the assessee and tax became payable on such income. The total amount of income is to be computed under the Income-tax Act on ....
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....come-tax Act has to accept the authenticity of the accounts with reference to the provisions of the Companies Act which obligates the company to maintain its account in a manner provided by the Companies Act and the same to be scrutinized and certified by statutory auditors and will have to be approved by the company in its general meeting and thereafter to be filed before the Registrar of Companies who has a statutory obligation also to examine and satisfy that the accounts of the company are maintained in accordance with the requirements of the Companies Act. In spite of all these procedures contemplated under the provisions of the Companies Act, we find it difficult to accept the argument of the Revenue that it is still open to the Assessing Officer to re-scrutinise this account and satisfy himself that these accounts have been maintained in accordance with the provisions of the Companies Act. In our opinion, reliance placed by the Revenue on sub-section (1A) of section 115J of the Income-tax Act in support of the above contention is misplaced. Sub-section (1A) of section 115J does not empower the Assessing Officer to embark upon a fresh inquiry in regard to the entries made in ....
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....sidered adequate by the management in view of the continued efforts for recovery. Therefore, the claim of the assessee could not be rejected simply on the ground that the doubtful debts have not been written-off as actual bad debt." 16. In the present case, at no stage of the proceedings, the Departmental authorities have concluded that the profit and loss account furnished by the assessee is not in compliance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956. Therefore having regard to the ratio in Apollo Tyres Ltd. (supra) the Assessing Officer couldn't have gone behind the figures in the profit and loss account, certified by the statutory auditors of the assessee. 17. When the profit and loss account for the relevant years were prepared in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956, the reference to any other figure than what is reflected in the audited profit and loss account, for determination of the book profit under section 115JB by the Assessing Officer would not be justified. But we find here that the Assessing Officer had failed to take into account the corrected return although it....