Book profit treated as company total income where normal tax is lower, resulting in tax at the specified book profit rate. Where a company's normal income tax is less than the tax on book profit, the book profit is deemed the company's total income and taxed at the rate specified in Paragraph A of the Second Schedule; book profit is computed as A + B - (C + D) where A is net profit per the profit and loss account, B comprises specified add backs (tax provisions, reserves, depreciation, deferred tax, dividends, and related items), C comprises specified credits and adjustments (including depreciation charged and certain reserve withdrawals and credits), and D is loss brought forward subject to prescribed limitations.
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Provisions expressly mentioned in the judgment/order text.
Book profit treated as company total income where normal tax is lower, resulting in tax at the specified book profit rate.
Where a company's normal income tax is less than the tax on book profit, the book profit is deemed the company's total income and taxed at the rate specified in Paragraph A of the Second Schedule; book profit is computed as A + B - (C + D) where A is net profit per the profit and loss account, B comprises specified add backs (tax provisions, reserves, depreciation, deferred tax, dividends, and related items), C comprises specified credits and adjustments (including depreciation charged and certain reserve withdrawals and credits), and D is loss brought forward subject to prescribed limitations.
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