AO cannot make adjustment to book profits certified by auditors to be computed as per prescribed accounting norms

Brief of the case:

• The Assessing Officer does not have the power to tinker with such accounts prepared as per Schedule VI and certified by the Auditors except for the adjustments permissible by Explanation to Sec 115JB to arrive at book profits.

• Thus, AO cannot dispute the routing of principal amount waiver through General Reserve as the same has been accepted by the auditor.

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