https://www.taxtmi.com/caselaws?id=69067 Book depreciation exceeding income-tax depreciation meant the factual premise for the surtax capital adjustment failed, so the adjustment could not be sustained under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The development rebate reserve, having been transferred to general reserve before the relevant capital computation date, remained to be taken as it stood on that date and could not be excluded from capital base. Rule 1(iii) did not apply on the facts, and Rule 4 could not be used to make a pro tanto reduction where the Act contained no specific authority for it. The original surtax assessment was restored. en-us Wed, 29 Dec 1993 00:00:00 +0530 Tue, 05 Apr 2011 10:05:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69067 Book depreciation exceeding income-tax depreciation meant the factual premise for the surtax capital adjustment failed, so the adjustment could not be sustained under the Second Schedule to the Companies (Profits) Surtax Act, 1964. The development rebate reserve, having been transferred to general reserve before the relevant capital computation date, remained to be taken as it stood on that date and could not be excluded from capital base. Rule 1(iii) did not apply on the facts, and Rule 4 could not be used to make a pro tanto reduction where the Act contained no specific authority for it. The original surtax assessment was restored. Case-Laws Income Tax Wed, 29 Dec 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69067