2002 (7) TMI 89

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.... The appellant is a private limited company engaged in manufacturing and sale of ortho pedic appliances like compression bandages, fixation bandages, etc. In the return of income filed, the assessee returned an income of Rs. 1,50,730. In the profit and loss account, depreciation was provided at the rates specified in the Income-tax Rules. While completing the assessment of income, the Assessing Officer recomputed the book profit for the purpose of section 115J of the Act after allowing depreciation as per Schedule XIV to the Companies Act read with section 350 at a lower rate. Against that order, the assessee took up the matter before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the assessee's a....

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.... the Companies Act, 1956 (1 of 1956)". Sub-section (1A) of the Act says that every assessee, being a company, shall, for the purpose of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act. The argument of learned counsel for the assessee is that the respondent being a private company, the preparation of its profit and loss account for the relevant previous year in accordance with the provisions of Part II of Schedule VI to the Companies Act is not applicable. Section 350 of the Companies Act, 1956, states as follows: "The amount of depreciation to be deducted in pursuance of clause (k) of sub-section (4) of section 349 s....