-1- IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1044 OF 2008 The Commissioner of Income Tax-V: Appellant v/s Khosla Metal Powders Pvt. Ltd. : Respondent Mr. Vimal Gupta for Appellant Mr. S.N. Inamdar for Respondent Coram : Dr. S. Radhakrishnan S.J. Kathawalla, JJ. Date : 8.9.2008 P.C. . Heard the learned counsel for the appellant and the learned counsel for the respondent. The following question of law is sought to be raised. On the facts and in the circumstances of the case, whether the Hon’ble ITAT is right in deleting the adjustment made in the computation of book profit u/s. 115JB by the AO when the assessee has not even disclosed the book liability in the books of accounts as per the Companies Act. . We have perused the order of the Income Tax Appellate Tribunal dt. 31.7.2007 wherein in paragraph 5 the Tribunal has categorically held as under:- -2- Having heard the rival contentions and having perused the material on record, we find that, as rightly held by the CIT(A), the impugned adjustment to the book results shown by the duly audited profit and loss account cannot hold good in law in the light of Hon’ble Supreme Court’s judgment in the case of Apollo Tyres Limited vs CIT(255 ITR 273). As Their Lordships have held that the Assessing Officer’s has "only the power to examining whether the books of accounts are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act" and that "the Assessing Officer thereafter has the limited power of making increase and reductions as provided for in the Explanation to the said Section". The Assessing Officer has, however, observed that "the Court’s decision is applicable only when the books of accounts as certified by the authorities under the Companies Act have been properly maintained". This stand of the Assessing Officer is clearly erroneous inasmuch he is only to see whether the books of accounts are "certified by the certified by the certified by the authorities authorities authorities under the Companies Act as having under the Companies Act as having under the Companies Act as having been been been properly maintained in accordance with properly maintained in accordance with properly maintained in accordance with the the the Companies Act" Companies Act" Companies Act" and it is not for him to venture to examine whether or not these are properly maintained. The distinction sought to have been made by the Assessing Officer is misplaced and cannot but be based on misreading the Hon’ble Supreme Court’s judgment. The CIT(A) has rightly reversed the action of the Assessing Officer. We confirm and approve the action of the CIT(A), and thus decline to interfere in the matter. . The Tribunal has concurred with the findings of fact of the CIT(A). It is only a finding of fact. There is no substantial question of law, hence the Appeal stands dismissed. (S.J. Kathawalla,J.) (Dr. S.Radhakrishnan,J.)