TaxTMI 
TaxTMI 
2020 (2) TMI 1064
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....en taken. Following substantial questions of law have been claimed: "(i) Whether in the facts and circumstances of the case, the orders Annexure P-1 and P-3 are legally sustainable? (ii) Whether in the facts and circumstances of the case, on correct interpretation of Section 115J of the Income Tax Act for determing the book profit, the appellant had the option to adopt the depreciation rates prescribed in the Income Tax Rules, 1961 in preference to the rates prescribed in Schedule XIV of the Companies Act, 1956? (iii) Whether in the facts and circumstances of the case, the depreciation for purposes of Section 115J of the Income Tax Act had to be worked out as per Schedule VI of the Companies Act or as per the Income Tax Rules, and ....
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....dgment, this Court following the decision of the Supreme Court in Apollo Tyres Ltd. v. CIT, (2002) 255 ITR 273 dis-agreed with the view taken by Kerala High Court in CIT v. Dynamic Orthopedics (P) Ltd., (2002) 257 ITR 446 (Ker.) and Madhya Pradesh High Court in CIT v. Vandana Rolling Mills Ltd., (1998) 234 ITR 693 (MP) holding that depreciation could not be calculated as per the provisions of the Rules. In Apollo Tyres Ltd.'s case (supra), the Apex Court dealt with the following question: "Can an AO while assessing a company for income-tax under s. 115J of the IT Act question the correctness of the P&L a/c prepared by the assessee-company and certified by the statutory auditors of the company as having been prepared in accordance w....
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....ceptable to the authorities under the Companies Act. There cannot be two incomes one for the purpose of Companies Act and another for the purpose of income-tax both maintained under the same Act. If the legislature intended the AO to reassess the company's income, then it would have stated in s. 115J that "income of the company as accepted by the AO. In the absence of the same and on the language of s. 115J, it will have to held that view taken by the Tribunal is correct and the High Court has erred in reversing the said view of the Tribunal. Therefore, we are of the opinion, the AO while computing the income under s. 115J has only the power of examining whether the books of account are certified by the authorities under the Companie....