Sunshine Limited charged depreciation on its fixed assets at the rates specified in the Income Tax Rules in its accounts consistently. The assessing officer of Income Tax disallowed the same and considered depreciation c

Answer 5(b) In computation of book profit U/S 115JB of the Income Tax Act, 1961 'the Act', only those additions and deductions given U/s 115JB should be applied. Any other provisions of the Income Tax Act should not be applied in computation of book profit. All other adjustments under the act shall be considered only in computation of total income. The assessing officer cannot re-compute depreciation as per Companies Act, since the company has been consistently applying Income Tax Rates, in its books also. However, depreciation on account of revaluation of assets can be disallowed in accordance with section 115JB of the Act.