TaxTMI 
TaxTMI 
2003 (1) TMI 47
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.... Income-tax Act, it is permissible for the Assessing Officer to make adjustments to the book profit beyond those authorised by the definition and to recast the profit and loss account? 2. Whether, on the facts and in the circumstances of the case, the Depart mental authorities and the Tribunal were justified in rejecting the amount of depreciation actually debited to the profit and loss account admittedly pre pared in accordance with Parts II and III of Schedule VI to the Companies Act, 1956, and in holding that the assessee ought to have provided depreciation on the same basis as adopted in the earlier years?" The assessee is a public limited company engaged in the business of manufacture and sale of two wheelers. The assessment year re....
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.... in Schedule XIV of the Companies Act, 1956, and on a pro rata basis. As a result of the change to the depreciation method mentioned in (i) above, the company has recomputed the depreciation with retrospective effect (including pro rata depreciation in respect of assets acquired up to 31st January, 1987). The shortfall of depreciation in respect of earlier year arising due to such recomputation amounting to Rs. 3,81,23,644 has been included in the depreciation charge for the year. Had this change not been made the depreciation for the year would have been lower by Rs. 91,23,951." "19. The company has maintained accounts for the period April 1, 1989, to March 31, 1990, in compliance with the provisions of section 44AA(2) of the Income-tax ....
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....ssing Officer arrived at a revised figure of book profit of Rs. 2,22,10,525 as against book loss of Rs, 1,64,49,937. On appeal filed by the assessee, the Commissioner of Income-tax (Appeals) concurred with the Assessing Officer and held that there was no justification for change of method from the straight line method to the written down value. On further appeal filed by the assessee, the Tribunal following its earlier decision in the case of Sudarshan Chemical Industries Ltd. v. Deputy CIT [1997] 60 ITD 629 (Pune) confirmed the orders passed by the authorities below. Hence, this appeal at the instance of the assessee. Mr. Inamdar, learned counsel appearing on behalf of the assessee, relied upon the decision of the apex court in the case ....
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....t, if the accounts are prepared and certified to be in accordance with Parts II and III of Schedule VI to the Companies Act, 1956. In the case of Apollo Tyres Ltd. [2002] 255 ITR 273, the apex court held that while computing the income under section 115J of the Income-tax Act, the Assessing Officer has only power to examine whether the books of account were certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act. It is further held that the Assessing Officer thereafter has limited powers of making increases and reductions as provided for in the Explanation to the said section. The apex court further held that the Assessing Officer does not have the jurisdiction to go beyon....