2001 (9) TMI 25

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... BABU J.-The Revenue relied on the law laid down by the Bombay High Court in the case of CIT v. Zenith Steel Pipes Ltd. [1978] 112 ITR 215. We are in entire agreement with the law laid down therein that if the assessee obtains deduction for a higher sum towards depreciation, but shows a lesser sum as the amount of depreciation in the profit and loss account and thereafter credits the difference be....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of 1961);" The facts of this case, however, are not such as to permit the application of that law, as it is the finding of the Tribunal that there was no separate depreciation reserve to which the differential was credited nor is there any finding that the difference was credited to a general reserve. On the other hand, the finding is that though there is a general reserve, this amount of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....epreciation allowed under the Income-tax Act was higher than the amount of depreciation set out in the profit and loss account. Moreover, before rule 1(iii) of the Second Schedule to the Companies (Profits) Surtax Act can be said to have been attracted, there must be an existence of a "reserve". Such a reserve could either be a general reserve or special reserve, but a reserve there must be to ....