NO QUESTION MARK ON AUDITED ACCOUNTS : SC TO I-T

The Supreme Court has said the income-tax department has to accept the authenticity of the accounts maintained in accordance with the provisions of the Companies Act and certified by the auditors. The assessing officer cannot go beyond the net profit shown in the profit and loss account, except to examine whether the books of accounts were duly certified by the authorities and properly maintained. The AO does not have the jurisdiction to go beyond the net profits shown in the profit and loss account except to the extent provided in the explanation (appended to Section 115J of the Income Tax Act).