The Commissioner Of Income Tax v. M/S.hansdhwani Trading Co. Pvt. Ltd

(-1-) IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.719 OF 2007 The Commissioner of Income Tax..Appellant Vs. M/s.Hansdhwani Trading Co. Pvt. Ltd..Respondent Mr.P.S. Sahadevan with Mr. Vimal Gupta for the Appellant Mr. J.P. Mistri with Mr. P.C. Tripathi & Mr. Raj Darak, for the Respondent CORAM:F.I.REBELLO &R.S.MOHITE, JJ.DATED: 16th March, 2009 CORAM: R.S.MOHITE, JJ. DATED: 16th March, 2009 P.C.: P.C.: . The Revenue is in Appeal for the assessment year 1999-2000 in respect of the following questions:- (a) Whether on the facts and in the circumstances of the case and in law, the Hon’ble Tribunal is right in confirming the order of CIT (A) and dismissing the appeal of revenue holding that the book profit as disclosed by the assessee does not deserve to be interfered with and thereby directing to exclude the addition of Rs.1,08,65,420/- made in the computation of book profit u/s.115 JA. (b) Whether under the provisions of section (-2-) 115JA the AO is not empowered to verify as to whether the accounts submitted by the assessee have been prepared in accordance with Part II and Part III of Schedule VI of Companies Act, 1956 especially in a case where the auditors have not expressly stated as such in their audit report. (c) Whether the AO is not authorized to recast the profit and loss account of the assssee by including therein certain income of which he finds having not being included therein and which according to the mandate part of II and Part III of Schedule VI of Companies Act, 1956 are includible in the profit and loss account of the Company." In the case of the assessee itself for the assessment year 1998-99 in ITA No.1136/Mum/2002 dated 7th October, 2006 the Tribunal relied on the judgment of the Supreme Court in the case of Apollo Tyres vs. C.I.T. 255 ITR 273 and held in favour of the assessee. Revenue has not preferred any appeal against the said order. 2. Similarly, in the case of The Commissioner of Income-tax vs. M/s.Akshay Textiles Trading & Agencies Pvt. Ltd., Income Tax Appeal No.607 of (-3-) 2005 decided on 17th October, 2007 a similar question had arisen and following the judgment in Apollo Tyres Ltd. (supra) we had held in favour of the assessee. For the same reasons we find no merit in this Appeal which is accordingly dismissed. (R.S.MOHITE, J.) (F.I.REBELLO,J.) (R.S.MOHITE, J.) (F.I.REBELLO,J.) (R.S.MOHITE, J.) (F.I.REBELLO,J.)