9911796707
TMI Blog2009 (7) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... e of such assets was in excess of the accounts, which in the opinion of the directors was reasonably for the purpose. Thus it is in the conformity of the accounting norms. Held that- the book of account was duly certified by the authorities under the Company Act and P&L A/c also maintained as per the provisions of company Act. thus there is no infirmity in the order of the Tribunal. - 61/2000 - - - Dated:- 14-7-2009 - AGRAWAL R. K. and GUPTA S. K. JJ. A.N. Mahajan for the appellant. S.D. Singh for the respondent. Judgment: The present income-tax appeal filed under section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has been admitted on the following sole substantial question of law arising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was confirmed by the Commissioner of Income-tax (Appeals), Muzzafarnagar by order dated June 16, 1993. The said order increasing the book profit to the extent of Rs. 9,95,569 on depreciation was set aside by the Tribunal in favour of the assessee. Hence, the present appeal by the Revenue. 5. Heard Sri A. N. Mahajan, learned standing counsel for the Department and Sri S. D. Singh, learned counsel for the respondent. 6. The only issue relates to the allowability of depreciation of Rs. 9,95,569 being the difference in the depreciation between the revalued amount of the building and the depreciation chargeable on the actual cost. 7. That as per the provisions of section 115J of the Act the profit shown in the profit and loss account sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved as follows: "It is stipulated in Part III of Schedule VI to the Companies Act that depreciation debited to the profit and loss account could be considered to be in the nature of reserve only when the amount written or retained by way of providing for depreciation, renewals or diminution in value of such assets is in excess of the accounts, which in the opinion of the directors is reasonably necessary for the purpose. Admittedly, depreciation debited on the revalued figure of assets was not found to be excessive by the directors. The provision was made in conformity with the said accounting norms. Therefore, in our opinion, the Assessing Officer was not correct in increasing the book profit to the extent of depreciation attributable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
