Whether, for purposes of determining depreciation to be provided under the section read with section 350, - Companies Law - Letter No. 10(1)/CL‑VI/62,

Circular: Letter No. 10(1)/CL ‑ VI/62, dated 4 ‑ 6 ‑ 1962. Subject:- Whether, for purposes of determining depreciation to be provided under the section read with section 350, The Department s view on the question of provision of depreciation, under section 205, on assets in respect of which no depreciation allowance is granted under the Income‑tax Act, have been set out fully in this Department Circular Letter No. 10(1)‑CL‑VI/61, dated 21‑5‑1962 [printed as Clarification 1]. In regard to the practical difficulty arising out of section 23A of the 1922 Act or section 104 of the 1961 Act, the Department s view is that such difficulties are not likely to arise in many cases in view of the consolidated allowance available under section 9(1)(i) of the 1922 Act or the corresponding provision in the 1961 Act. It may also be pointed out that if no depreciation is provided in respect of an asset in the books of the company, it would not be correct to hold that such a balance sheet would show a true and fair view of the state of affairs of the company.