CIT vs Adbhut Trading Co. P. Ltd.

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 u/s 115JB of the income tax Act, 1961, by fol''lowing the decision of the apex court in the case of Apollo Tyres Ltd. Vs. Commissioner of Income Tax, Kochi, . According to the Revenue, the assessee has intentionally prepared a wrong profit and loss account. Once the accounts including the profit and Toss 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.

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. Vs. Commissioner of Income Tax, Kochi, cannot be faulted. In the result, we see no merit in the appeal. The appeal is accordingly dismissed with no order as to costs.