2008 (7) TMI 325

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....s a result of changing the method of providing the depreciation from the straight line method to written down value method? 2. Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in upholding the CIT (A)'s order deleting the disallowance of Rs. 9,58,068/- representing the assessee's claim for depreciation as prior period adjustments as a result of the assessee's switch over from straight line method to written down value method for providing depreciation ?" 2. The assessee is a Company in which public are not substantially interested. While framing the assessment for the assessment 1989-90, the Assessing Officer made addition of two amounts of Rs. 61,602 and Rs. 9,58,068 by dis....

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....of India, and paras 25 and 26 of the order of Cochin Bench of the Tribunal in 44 TTJ 534 and Apollo Tyres Ltd. v. Deputy CIT [1992] 43 ITD 464 answered the issue in favour of the assessee." 5. In Dy. CIT vs. Samir Diamond Mfg. Ltd. it was held that the rates prescribed in Schedule XIV of the Companies Act are only the minimum rates for limited purposes of dividend declaration (sec. 205) and managerial remuneration (sec. 350) and that the assessee being a private limited company, section 350 is not applicable and that both part II and III of Schedule VI to Companies Act do not provide for rates of depreciation for purposes of arriving at the book profit and that the assessee is free to adopt any rate of depreciation not below the rate men....

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.... the limited extent provided in the Explanation. It was further observed that while looking into the accounts of the company, the Assessing Officer has to accept the authenticity of the accounts with reference to the provisions of the Companies Act, which obligate the Company to maintain its accounts in a manner provided by that Act and the same is to be scrutinized and certified by statutory auditors and approved by the company in general meeting and thereafter to be filed before the Registrar of Companies. It was observed that 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 the books of account of the company. 8. It may be noted that the CIT (Appeal....