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TMI Blog2013 (12) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... and tear of the business assets is a first charge on profits, without deducting which it is not possible to arrive at a profit in a year - The normal depreciation as provided under the Income Tax Act and not as per the Companies Act, has to be taken into consideration while computing the Income Tax of an assessee - Decided against Revenue. - Tax Appeal No. 15 of 2007 - - - Dated:- 28-11-2013 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Smt. Desai, learned Counsel appearing for the Appellant, submits that the learned CIT Appeals as well as the learned Tribunal have failed to take into consideration that while computing the taxable income, the authorities have taken into consideration the depreciation as provided under the Companies Act and not as per the Income Tax Act. Learned Counsel further submits that the profits and loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue, has found that while considering a taxable income of an Assessee, the Assessee is entitled to the depreciation as provided under the Income Tax Act. It has been found that while considering a case of an Assessee for assessment, it will be governed by the provisions as contained under the Income Tax Act. In so far as the Judgment in the case of P. K. Badiani vs. Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Court found that though the part of the profit was transferred to the development rebate reserve account, the same was not capitalised by the Company and, as such, could not be taken away from the ambit of the definition accumulated profits . 4. The question that arises for consideration before this Court is somewhat different. The question that arises for consideration is as to whether the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uting the Income Tax of an Assessee. In that view of the matter, it is a settled law that while assessing income, the Assessing Authority is required to take into consideration the depreciation as provided under the Income Tax Act and not as provided under the Companies Act. 6. In that view of the matter, we hold that the ratio of the Judgment in the case of P. K. Badiani vs. Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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