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TMI Blog2001 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 between the two figures of depreciation to a general reserve, such a general reserve will have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 differential was not credited to that or any other reserve. The mere existence of the differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 which a credit has been made. The Tribunal has found that there was no depreciation reserve. A noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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