Depreciation to be provided for purposes of determining net profits for payment of managerial remuneration

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....aragraph 2 of the memorandum, it is stated that "in calculating the amount of depreciation to be deducted ... in respect of the first financial year ending on or after December 28, 1960, the written down value should be worked out by deducting the normal depreciation allowed for income‑tax purposes ... in respect of financial years ending on or before December 27, 1960, from the written down....

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....g at the commencement of this Act or immediately thereafter and at the end of each subsequent financial year". The suggestions in your memorandum could only result in the depreciation calculation being based on a notional figure whereas the Act clearly stipulates that the calculation shall be based on the written down value at the end of the financial year concerned. Taking as an example a compan....

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....hat depreciation must be calculated with reference to the written down value of the assets as shown by the books of the company at the end of each financial year. Answer : The Government of India is unable to accept the view that, for the purpose of section 350, depreciation must be calculated with reference to the written down value of the assets as shown by books of the company at the end of ea....