Cochin Cadalas (P) Ltd. vs Commissioner of Income Tax

S. Sankarasubban, J.

The main question to be considered is whether the Tribunal was right in modifying the net profit as shown in the profit and loss account for the purpose of computation of book profit. As a matter of fact, the Tribunal had modified the net profit. Similar case was disposed of by the Supreme Court in Apollo Tyres Ltd. Vs. Commissioner of Income Tax, Kochi, in which it is stated thus :

Net profits in profit and loss account prepared in accordance with Parts II and III of Schedule VI to the Companies ActAccounts scrutinised and certified by statutory auditorsassessing officer has no power to scrutinise except as provided in Explanation.

In view of the above law declared by the Supreme Court, the order of the Tribunal cannot stand. Hence, we set aside the order of the Tribunal passed in all these cases and remand the case back to the Tribunal. The Tribunal may, if necessary, remand the case back to the lower authorities.

The ITA and ITRs are disposed of as above.