Amount withdrawn from revaluation reserve and credited to the Profit & Loss account cannot be reduced from the book prof

Amount withdrawn from revaluation reserve and credited to the Profit & Loss account cannot be reduced from the book profit if such amount had not increased the book profit at the time of creation of reserve Facts • The taxpayer is a limited company engaged in the business of manufacture of yarn and polyester. • The taxpayer during the assessment year (“AY”) 2000-01 revalued its fixed assets by increasing the net book value by INR 2885.8 million and credited the said sum to the revaluation reserve. •  In the subsequent year i.e. AY 2001-02, the taxpayer debited to the Profit &...