Depreciation accounting: absence of tax allowance does not excuse charging depreciation; omission undermines true and fair view. The Department advises that absence of a depreciation allowance under the Income tax Act does not excuse a company from providing depreciation for Companies Act purposes; a prior Circular offers full clarification. Availability of a consolidated allowance under tax law limits practical conflicts. Omission of appropriate depreciation in the books would undermine the balance sheet's true and fair view.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Depreciation accounting: absence of tax allowance does not excuse charging depreciation; omission undermines true and fair view.
The Department advises that absence of a depreciation allowance under the Income tax Act does not excuse a company from providing depreciation for Companies Act purposes; a prior Circular offers full clarification. Availability of a consolidated allowance under tax law limits practical conflicts. Omission of appropriate depreciation in the books would undermine the balance sheet's true and fair view.
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