Bombay H.C : the profit and loss account has not been prepared in accordance with the provisions of the Companies Act, 1956

High Court Of Bombay

CIT vs. Adbhut Trading Co. (P.) Ltd.

Section : 115J

J.P. Devadhar And A.A. Sayed, JJ.

IT Appeal No. 4937 Of 2010

July 20, 2011

JUDGMENT

1. In the present case, the Income-tax Appellate Tribunal has confirmed the order of the Commissioner of Income-tax (Appeals) in deleting the addition of Rs. 1.98 crores made by the Assessing Officer while computing the book profit under section 115JB of the Income-tax Act, 1961, by following the decision of the apex court in the case of Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273 (SC). According to the Revenue, the assessee has intentionally prepared a wrong profit and loss account. Once the accounts including the profit and loss account are certified by the authorities under the Companies Act it is not open to the Assessing Officer to contend that the profit and loss account has not been prepared in accordance with the provisions of the Companies Act, 1956.

2. In these circumstances, the deletion of the addition by the Tribunal by following the decision of the apex court in the case of Apollo Tyres Ltd. [2002] 255 ITR 273 (SC) cannot be faulted. In the result, we see no merit in the appeal. The appeal is accordingly dismissed with no order as to costs.

[Citation : 338 ITR 94]

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