https://www.taxtmi.com/caselaws?id=69421 Rule 1(iii) of the Second Schedule to the Companies (Profits) Surtax Act applies only where amounts are consciously credited to reserves and those credited sums are allowed as deductions under the Income-tax Act; excess depreciation allowed in income-tax assessment does not, by itself, satisfy those conditions, so it cannot reduce the surtax capital base. The same reasoning rejects any reduction of the capital base by the aggregate of earlier depreciation differentials. Investment allowance under the Income-tax Act is likewise not an item that can be adjusted against capital base under rule 4, because it is a deduction in computing total income and not a reserve or excluded income item. The surtax assessments were required to be recomputed accordingly. en-us Wed, 29 Dec 1993 00:00:00 +0530 Wed, 06 Apr 2011 16:51:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69421 Rule 1(iii) of the Second Schedule to the Companies (Profits) Surtax Act applies only where amounts are consciously credited to reserves and those credited sums are allowed as deductions under the Income-tax Act; excess depreciation allowed in income-tax assessment does not, by itself, satisfy those conditions, so it cannot reduce the surtax capital base. The same reasoning rejects any reduction of the capital base by the aggregate of earlier depreciation differentials. Investment allowance under the Income-tax Act is likewise not an item that can be adjusted against capital base under rule 4, because it is a deduction in computing total income and not a reserve or excluded income item. The surtax assessments were required to be recomputed accordingly. Case-Laws Income Tax Wed, 29 Dec 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69421