Accumulated profits u/s. 2(22)(e) to be computed after deducting depreciation as per income tax rules

Babulal Jain Vs ITO (Telangana High Court) Telangana High Court held that accumulated profits under section 2(22)(e) of the Income Tax Act are to be computed taking into account the depreciation as per the Income-tax Rules. Thus, matter decided in favour of the assessee. Facts- The assessee filed income tax return declaring the total income of Rs.1,95,880/-. The return was accepted by AO by an order passed u/s. 143(1) of the Income-tax Act, 1961. Subsequently, the assessment was reopened and the notice dated 27.03.2003 u/s. 148 of the Act was issued to the assessee. AO inter alia treated the l...