2009 (4) TMI 54

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..... man Senior Standing Counsel for Income Tax, for the Appellant. Mr. J. Balachandar for Mr. S. Sridhar for the Respondent. JUDGMENT The Judgment of the Court was delivered by K. Raviraja Pandian, J. - By formulating the following Substantial Question of Law, the Revenue is on appeal against the order of the Income Tax Appellate Tribunal, Madras "C" Bench, dated 25.5.2007 made in ITA.No.2733/Mds/2005. The relevant assessment year is 2000-2001. " Whether, in the facts and circumstances of the case, the Tribunal was right in allowing deduction under Section 80HHC on the basis of book profits under Section 115JA even though the eligible profits under Section 80HHC was Nil as per normal computation ?" 2. The facts as cul .....

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..... e said order is now canvassed before this Court by filing this appeal. 3. We heard the argument of the learned Senior Standing Counsel for the Revenue, who fairly submits that the issue involved in this case is covered by a decision of the Division Bench of this Court in which one of us is a party (K.Raviraja Pandian, J.) in COMMISSIONER OF INCOME TAX VS. RAJANIKANT SCHNELDER AND ASSOCIATES P. LTD., reported in (2008) 302 ITR 22 (Mad), wherein after taking into consideration the ratio laid down by the Apex Court in SURANA STEELS P. LTD., VS. DEPUTY COMMISSIONER OF INCOME TAX reported in (1999) 237 ITR 777 and in APOLLO TYRES LTD., VS. COMMISSIONER OF INCOME TAX reported in (2002) 255 ITR 273 (SC), this Court has held as follows:- .....

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..... n the Explanation to Section 115J. The assessing officer does not have the jurisdiction to go behind the net profits shown in the profit and loss account except to the extent provided in the Explanation. The use of the words "in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act" in Section 115J was made for the limited purpose of empowering the assessing officer to rely upon the authentic statement of accounts of the company. While so looking into the accounts of the company, the assessing officer has to accept the authenticity of the accounts with reference to the provisions of the Companies Act, which obligate the company to maintain its accounts in a manner provided by that Act and the same to be scru .....

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