2007 (9) TMI 225

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....nt of the appeal is as follows "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the assessee having no profits from the export is eligible for the deduction under section 80HHC on its book profits under section 115J ?" 2. For the assessment year 1998-99, the assessee filed its return. The Assessing Officer disallowed the claim of the assessee in respect of the deduction under section 80HHC, on the ground that the book profit income computed under section 115JA was a negative income. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) confirmed the assessment order on the ground tha....

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.... Court in the case of Apollo Tyres Ltd. V. CIT [2002] 255 ITR 273, wherein it was held that the Assessing Officer while computing the book profits of a company under section 115J of the Income-tax Act, 1961, has only the power to examine whether such books of account 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 of making increases and reductions as provided for in the Explanation to section 115J The Assessing Officer does not have the jurisdiction to go behind the net profits shown in the profit and loss account except to the extent provided in the Explanation. The use of the words "in accordance with t....