Accumulated Profits for deemed dividend is to be arrived after allowing Depreciation as per Income Tax Act

XL Enterprises Ltd. Vs ITO (ITAT Kolkata)

Undisputed facts are that the assessee has taken advance of Rs. 8,58,26,789/- from P N Memorial Neurocentre & Research Institute Ltd. in which it was holding 17.94% of equity shares. Out of said amount of total advance , a sum of Rs. 4,02,43,658/- was coming from earlier year as opening balance whereas Rs. 4,55,83,131/- was received during the year. The assessee has accumulated profit as per the books of account maintained in consonance with Companies Act as on 31.03.2012 of Rs.

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