https://www.taxtmi.com/caselaws?id=59045 Rule 2 of the Second Schedule requires capital to be reduced by the cost of assets falling within rule 1 of the First Schedule, and that reduction applies even if those assets did not yield income in the relevant previous year. The descriptive reference to those assets does not make the adjustment depend on actual income receipt; it is enough that they belong to the specified category. Debentures of ICICI did not fall within clauses (vi) or (viii) of rule 1, so their cost was not liable to exclusion. The main contention on rule 2 failed, while exclusion of the debentures was accepted. en-us Wed, 12 Jun 1985 00:00:00 +0530 Thu, 23 Dec 2010 16:52:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59045 Rule 2 of the Second Schedule requires capital to be reduced by the cost of assets falling within rule 1 of the First Schedule, and that reduction applies even if those assets did not yield income in the relevant previous year. The descriptive reference to those assets does not make the adjustment depend on actual income receipt; it is enough that they belong to the specified category. Debentures of ICICI did not fall within clauses (vi) or (viii) of rule 1, so their cost was not liable to exclusion. The main contention on rule 2 failed, while exclusion of the debentures was accepted. Case-Laws Income Tax Wed, 12 Jun 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59045