| Case ID |
36918a4c-ebdc-4ffb-9cff-41bbc9e52263 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
In this case, the Income-tax Appellate Tribunal confirmed the order of the Commissioner of Income-tax (Appeals) that deleted the addition of Rs. 1.98 crores made by the Assessing Officer while computing the book profit under section 115JB of the Income-tax Act, 1961. The Tribunal followed the decision of the Supreme Court in Apollo Tyres Ltd. v. CIT, which stated that once accounts, including the profit and loss account, are certified by the authorities under the Companies Act, it is not permissible for the Assessing Officer to allege that the profit and loss account has not been prepared according to the provisions of the Companies Act, 1956. The appeal was dismissed with no order as to costs. |
| Summary |
This case revolves around the interpretation of the Income-tax Act, particularly section 115J, which deals with zero-tax companies. The Bombay High Court examined the validity of the Assessing Officer's claims against the certified accounts of Adbhut Trading Co. (P.) Ltd. The court reinforced that certified financial statements under the Companies Act cannot be contested by tax authorities. This ruling is significant for businesses relying on certified accounts for tax purposes, ensuring that their financial reporting is respected in tax assessments. The decision aligns with the Supreme Court's precedent in Apollo Tyres Ltd. v. CIT, emphasizing the importance of adhering to established accounting standards. Legal professionals should note this case as it clarifies the boundaries of tax assessments in relation to certified accounts, a trending topic in corporate law. |
| Court |
Bombay High Court
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| Entities Involved |
Commissioner of Income Tax,
Adbhut Trading Co. (P.) Ltd.
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| Judges |
J.P. Devadhar,
A.A. Sayed
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| Lawyers |
Vimal Gupta,
J.D. Mistri,
P.C. Tripathi,
Raj Darak
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Adbhut Trading Co. (P.) Ltd.
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| Citations |
2011 SLD 2864 = (2011) 338 ITR 94
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| Other Citations |
Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273 (SC)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
115J,
115JB
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