Declaration Whether, for purposes of determining depreciation to be provided under the section read with section 350, it is immaterial as to whether depreciation in respect of any assets is actually admissible under the Income tax Act and rules made thereunder.

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..... 09;5‑1962. Subject:- Declaration ‑ Whether, for purposes of determining depreciation to be provided under the section read with section 350, it is immaterial as to whether depreciation in respect of any assets is actually admissible under the Income‑tax Act and rules made thereunder. A case has been brought to the notice of this Department in which a company declared and paid d .....

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..... mentioned above, is not tenable in law. As the company managements are aware, the provisions in sub‑sections (1) and (2) of section 205 are mandatory in nature and must be strictly complied with by every company before declaring or paying any dividend. For purposes of determining the amount of depreciation to be provided under section 205 read with section 350, it is immaterial as to whethe .....

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..... ct. If a company has calculated its distributable profits without providing for depreciation in the manner required by section 205 and if the profit and loss account of the company does not provide for depreciation accordingly, the balance sheet and profit and loss account of the company for the relevant year cannot be said to give a true and fair view of its state of affairs or of its profits or .....

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