Declaration Whether, for purposes of determining depreciation to be provided under the section read with section 350, it is immaterial as to whether depreciation in respect of any assets is actually admissible under the Income tax Act and rules made thereunder.

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....9;5‑1962. Subject:- Declaration ‑ Whether, for purposes of determining depreciation to be provided under the section read with section 350, it is immaterial as to whether depreciation in respect of any assets is actually admissible under the Income‑tax Act and rules made thereunder. A case has been brought to the notice of this Department in which a company declared and paid di....

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....mentioned above, is not tenable in law. As the company managements are aware, the provisions in sub‑sections (1) and (2) of section 205 are mandatory in nature and must be strictly complied with by every company before declaring or paying any dividend. For purposes of determining the amount of depreciation to be provided under section 205 read with section 350, it is immaterial as to whether....