https://www.taxtmi.com/caselaws?id=37835 For section 23A of the Income-tax Act, 1922, commercial profits must be judged on bona fide business principles, and a company's balance-sheet is only prima facie evidence of its financial position when dividend is declared. Where depreciation has been charged in the accounts on bona fide commercial principles and there is no finding of inflation, deflation, mistake, or manipulation, the taxing authority cannot replace that figure with assessment depreciation merely because the tax records show a different written-down value. The book profits therefore could not be enhanced by adding back the difference in depreciation, and the issue was answered in the negative. en-us Mon, 03 Oct 1977 00:00:00 +0530 Thu, 01 Apr 2010 12:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37835 For section 23A of the Income-tax Act, 1922, commercial profits must be judged on bona fide business principles, and a company's balance-sheet is only prima facie evidence of its financial position when dividend is declared. Where depreciation has been charged in the accounts on bona fide commercial principles and there is no finding of inflation, deflation, mistake, or manipulation, the taxing authority cannot replace that figure with assessment depreciation merely because the tax records show a different written-down value. The book profits therefore could not be enhanced by adding back the difference in depreciation, and the issue was answered in the negative. Case-Laws Income Tax Mon, 03 Oct 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37835