1978 (8) TMI 10

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e under s. 256(1) of the I.T. Act, 1961, read with s. 18 of the Companies (Profits) Surtax Act, 1964: Whether, on the facts and in the circumstances of the case and on a proper interpretation of Expl. 1 to rule 2 of the Second Schedule to Companies (Profits) Surtax Act, 1964, the Tribunal was right in holding that the sum of Rs. 70,33,000 being the adjustment made in respect of the excess depre....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rovided in past transferred from profit & loss a/c. " and in Sch. D (Part I) of the balancesheet Rs. 70,33,000 was shown as adjustment of excess depreciation on buildings, machinery, etc., being the difference between the amount provided and the amount calculated under s. 205(2)(b) of the Companies Act, 1956, up to 30th June, 1967. The company was claiming depreciation according to the written ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in the computation of the capital of the company for the purpose of the aforesaid Act which was prejudicial to the interests of the revenue. He directed the ITO to modify the assessment by excluding Rs. 70,33,000 from the computation of the capital of the company for the purpose of assessment under the Act. The assessee then filed an appeal which was dismissed by the Tribunal in view of Expl. 1....