2011 (7) TMI 716 - HC - Income Tax

Addition - 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 - Decided in favor of the assessee

Summary

The High Court Bombay upheld the Income-tax Appellate Tribunal's decision to delete the addition of Rs. 1.98 crores made by the Assessing Officer under section 115JB of the Income-tax Act, 1961. The Tribunal followed the apex court decision in Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273 (SC). The court dismissed the appeal, stating that once accounts are certified under the Companies Act, the Assessing Officer cannot challenge their preparation.