The High Court, following Supreme Court’s view in case of Apollo Tyres Ltd. v. CIT (2002) 255 ITR 273 (SC), held that AO was not justified in disallowing the depreciation of the previous year, while computing book profits under Section 115J, which is already approved through the final audited accounts of the Company and is not subject to be re-scrutinised by AO . (AY. 1988-1989).
JCIT v. South Eastern Coalfields Ltd. (2018) 303 CTR 102 / 166 DTR 321 (Chhattisgarh) (HC)
S. 115J : Book profit – Explanation (iv) to s. 115J cannot be read or enlarged in the manner so as to allow an impermissible act of reopening of the accounts