AO can make adjustment to profit if books are not in accordance with established accounting principles

The assessee had contended that the Assessing officer was not entitled to make adjustments to book profit shown in the audited The question that had arisen was whether the Assessing officer was entitled to disturb the net profit shown by the assessee in the profit and loss account prepared as per the Companies Act, 1956. As per the provisions of section 211 of the Companies Act, the companies have to follow the applicable accounting standards. However, if the profit and loss account and the balance sheet do not comply with the accounting standards, such companies are required to disclose about...