https://www.taxtmi.com/caselaws?id=71453 Excess depreciation allowed under the Income-tax Act over book depreciation must be deducted from other reserves, including the general reserve, when computing capital under the Companies (Profits) Surtax Act. Where accounts use the straight-line method but tax depreciation follows the reducing-balance method, the relevant reduction is the cumulative depreciation difference rather than only annual differences. Dividend and investment allowance appropriations cannot be treated as necessarily drawn first from mixed funds containing that excess, because any allocation choice is subject to the statutory surtax scheme. The depreciation difference is therefore excluded from the capital base. en-us Tue, 30 Jun 1992 00:00:00 +0530 Sat, 23 Apr 2011 15:09:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71453 Excess depreciation allowed under the Income-tax Act over book depreciation must be deducted from other reserves, including the general reserve, when computing capital under the Companies (Profits) Surtax Act. Where accounts use the straight-line method but tax depreciation follows the reducing-balance method, the relevant reduction is the cumulative depreciation difference rather than only annual differences. Dividend and investment allowance appropriations cannot be treated as necessarily drawn first from mixed funds containing that excess, because any allocation choice is subject to the statutory surtax scheme. The depreciation difference is therefore excluded from the capital base. Case-Laws Income Tax Tue, 30 Jun 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71453