TaxTMI 
TaxTMI 
2013 (12) TMI 200
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....itted on the following two substantial questions of law : A) Whether on the facts and in the circumstances of the case, the ITAT as also the CIT(A) have erred in holding that accumulated profits is required to be determined after considering depreciation under the Income Tax Act and not under the Companies Act, 1956 ? B) Whether on the facts and in the circumstances of the case, the ITAT err....
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....while arriving at a taxable income, the authorities ought to have taken into consideration the percentage of depreciation as provided under the Companies Act. Learned Counsel further submits that the Apex Court in the Judgment in the case P. K. Badiani vs. Commissioner of Income Tax reported in (105 ITR 642), has laid down a distinction between "profits in the commercial sense" and "profits as und....
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....estion that arose for consideration was as to whether the development rebate reserve created by the Company by charging the amount to the profit and loss account would be entitled to a deduction under the provisions of Section 2(6A) of the Income Tax Act. The Apex Court held that unless the accumulated profit is capitalised in some form or the other, mere transfer of the profits to any reserve acc....
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....Companies Act. 5. The law is no more res-integra. Various Judgments including the ones in the case of Star Chemicals Pvt. Ltd. vs. Commissioner of Income Tax reported in (1993) 203 ITR (BOM) and Commissioner of Income Tax vs. Jamnadas Khimji Kothari reported in (1973) 92 ITR 105 (BOM), have held that the depreciation arising from the wear and tear of the business assets is a first charge on pro....