Assessment of Companies ; ley aaa asesse@us 2G31) of the Income Tax Act, 1961. The assessment s different from the assessment of other assessees in many says. Individuals and Hindu Undivided Families are liable to pay income tax only’ in the case their total income exceeds the minimum prescribed limit for them. But a company Hable 10 pay t2X on their total income irrespective of the size of the income as no rninimum limit has been prescrived for companies. The companies pay tax at a flat rate, wile other assessees pay’ tax at different rates as applicable in different slabs of income For the purpose of assessment, companies have been classified into many categories ‘Therefore. it is necessary to understand the meaning and classification of companies as some provisions of the Act and rate of tax is different for different companies. Definition and Classification of Companies The definition of company as per Income Tax ‘Act, 1961 is much wider than the definition given under the Companies Act, 1956. As per Section 2(17) of the Income Tax Act, 1961 company means the following (i) Any Indian Company, or i) Any body corporate by or under the laws of a country outside India, or (ii) Any institution, association or body which was assessed as a company for any assessment year under the Indian Income Tax Act, 1922 or which was assessable or was assessed under the Income Tax Act, 1961 for the assessment year 1970-71 or any earlier assessment year, or (iv) Any institution, association or body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the Central Board of Direct Taxes to be a company But such institution, association or body shall be deemed to be a company for such assessment years as specified in the declaration, It is clear from the aforesaid definition of company that it includes some associations and union also which are not incorporated as company if CBDT (Central Board of Direct Taves) declares it as a company. On a few occasions the Board has exercised its powers and dec! lared Chamber of Commerce Transport Corporation and Cenain Clubs to be a company and recovered the tax accordingly. This definition includes foreign company also. 1. Indian Company : According 10 S Company if it is formed and registered under the it falls in one the followings © <, 2(26) of the Act, a company is an Indian | Companies Act, 1956 and include it iegory out o! Scanned with CamScannerlating to ¢g, or any law rel istered oe than the State oF Jam, el in sub-clause of this clays Central, State oF Provincial 4,” is declared by the Board tg i (A company formed and formerly in foree in ay Prtries spk ashir and the Union Te sete (0) A corporation established by ne which i (©) Any institution, association oF company fs ‘company under clause (17) and Kashimir, @ y ®) In the ease of the State of Jam ar in that State (©) In the case of any of the Union Territo pany formed and registereg Sa Vener 2c é ng Daman and Diu, and Pondicherry, na Tapas ly any law for the time being in force in rrincipal office of the con, Provided that th registered, athe case may Be BEET Peay, at the reise A Corporation, institution, association or body in med ay [See 226K oy " copay gen net pn an hs Aes a other company which, in respect of its income ttle ayer, within Indi oe the. preseribed arrangements for the declaration eae re aaa dividends including dividends on preference shares pa 1S 202 Note : An Indian Company is a domestic company in all coding 4 foreign company may be treated as domestic company if according Ie 27 of come Tax Rules, 1962 itis managed from India iv _— (© The company bas regularly maintained the shate-esister for all shareoldey at its principal place of business within India; / {1 The general meeting for passing the accounts of the previous year relevant ihe assessment year and for declaring any dividend in respect thereof shall held only at a place within India: (Gi) The dividends declared, if any, shall be payable only within India to al shareholders, [Rute 27} Note : If company in respect of any assessment year fils in making all the aforesaid arrangements, then, the company shall not be d Assessment Year, {2Pes of Domestic Companies : For the purposes of assessment in the Act, the domestic companies may be further classifed in the following two categories : (@) Widely held domestic company: and (b) Closely held domestic company. _@) Widely held Domestic Company : A domestic company in which the public 'S substantially interested is known as widely held domestic company, (©) Closely held Domestic Company + domestic company in y iS not substantially interested is known as Slosely held domestic company Note : Meaning of substantial interest is ag follows : 3. Company i «J as domestic company for tha ich the public lly Interested : According 10 6 Companies are said two be © Bank of India (RBI): A ¢ RBI or in wW : which not less than 40% or taken lopeber) bythe Goyummee nye Aa a Scanned with CamScannersessment of Companies 5 5, oration owned by that B; oc 8 cOTe shares of ank. Shares include i h be sre al share cob aHY ate of different den oth equity shares and preference 2 nen OF the company, nm neton, 40% shares means 40% ji) Company Registers . Coote nceustered under Seetion 8 of the Companies Act, 2013 : In this ich are formed to promote Commerce, rofit making objects. These companies 0 its members, , Science, Charity oF religion oF other non-| qhould prohibit the payment of any dividend 4 iii) Company without Share Canj yoga. having’ nO share copia capa declare by the Bourd ie, CRDT : A ‘No deduetor ivstration 8 06 a Given below FS the Statement of Pr Panel Revenue Tain Operations Tanga fra |s1,0.000 Other Income Resto Sal Qares i “Total Revenue (I~ Il ae! Expenses eLsz000) Purchase of Raw Cotten, | ssonoo Railway Freight man Changes in Inventories of Stockinsrade | Opening Stock oe Closing Stock 6.00000) \6,00,000) Salaries and Wages (¥soo00 Staff Welfare Expenses 10.000 Ault Fee 1.000 Legal Expenses sooo General Ch 28.000 Repairs to Buildings and Machinery 14.000 Interest paid on Bank Overdraft Interest Depreciation Rent Contribution to staff welfare fund (unrecognised) Commission for loan Reserve for bad debts Bad debts writen off Net Profit before Tax (IMI -1V) Less: Income Tax Net Profit ater Tax Less: Allocations and Appropriations Transfer to Gercral Reserve Net Profit after Allocation and Appropriations oft and Loss of Mehandiratta Lid for will be allowed after 10 years Scanned with CamScanner- “EY, = ofthe company for the he income oF me com ng, ce iy General charges inte OTe in bby the workers. ae ™) Ses include © 10.500 Fre 0 A re el With proseetion ofa det fo Speman Gr net ons emis ; (oy eae te acorns wih retin on erate st 12000 te empany sore 2 et fo, On 22, he one Tae fie pt on (42020 Fae ee Bape coe tx si © 7.80. Compan a Tot non of oration ibility 1 ig sun w= Solution : HRI, roel Rete Fee, Seeing eye i oF Pee Wel i 0 fo, eins eligible fr deprecation @ 15 fy al plant for € 28.000 (depret 780). Depreciation on other depres sf Mehandliratta Ltd. [2 = gan 1) 8 eee hanged BY thease hy es p mt ay id aa) com fe thee 4& 10,000 eins COS OF acitg ine income-tax 125 OF plang 3 depreciation 15%). On Ie ap ty [Ay Tacome rom Busnes: Tet Pfs per P-L fe ‘Ad este aed bank Reserve forbad debs Depeitonnen epately Contin nce sa wee fd Provision for comet ‘ranaert Gener Resene Li ogo by acer tables per Seton (1) Donation fod eet ind Conc Wl nag ein) pends a conection wah poszetn fx smug ‘of goods . eins Copal expendi on busines penises 5,000 10,000 1,25,000] ‘5,000 1,00,000) 5,000 1,000] 1,500] 2,000 10,000] Less: Items to be deducted: Depreciation on exerson of tung (10% 0F® 10,000) ‘Noma depreciation on Plant ‘Additonal Depreciation on New Plat (10% of 10,000) 1,000 14350) 1,000) jorking Note work ‘Expenses regarding incom, 43 caleulation of Nora Dy Deprecated valve ee sale proceeds of plan Less “palance es ison 92,000 7ston? 10,009 ‘Nomal Depreciation 4, Normal deprecation and adie plant during the previous year plant was used for less han 18 dine Re ‘ill be allowed in next ation 9: Following isthe Statement of which publi ings Slates ust {Revenue from Operations Gross Profit Other Income Dividends Profit on Sale of Machinery ‘Total Revenue (1+ 1) Expenses Selaries| Directors Fees Printing and Stationery Office Expenses {General Expenses Legal Expenses Advertisement Depreciation Fine and Penalties Underwriting Commission ‘Badedebts writen off| Donations m1, W. Less: Income Tax Net Profit after Tax er 4 Co oF HP ee ag V. Net Profit before Tax (it =1¥) Pectin on Plan, 2029 Fas towed as epen wen 1.20000 on Plat tl ori we on pn of 24 tac ie'9 73 larry ae yt Rey anon pean : ‘sSesoment year 2021-22. Prfitnd Lasso Apia Beta Led, adomestic company subtatlyneel r sisal teh tryed saat of Pacand Ls fhe ear ee Fr eh 2 Particulars ‘Total Expenses Depreciation on other depreciable assets Add Profit on snugling transactions Gross Tota Income ‘et; Detuton ner Seton 80G in tse of lonaton to Prime Minister's Drought Relief Fund Total locome 7,500 “The following further information (1) Dividends amounting (et. 2020 andthe balance (2) Depreciation has been ‘machinery sold dur hasbeen received ithe year was the only Slime ers : rn aera fm a domes company it fe rom Unit Trust of India. oo Ase pr ncome Te Rls. THE a in that block. (6) Donations include the following Scanned with CamScannerP om a ee ent of Co a) oe sa9 28 ome Roe ML ua instalments, F200 w ine Mi Pet ee omen OF ly 20 43 ill 6 alone yh ps wy i € 18.000 aston $2 re benefit of Muslin gig" poration 102 ne Jean ep aamed expN Froiane eg yite frye] te rot & Lot Accu nen aay Pron ac 2 sues of shares, 7 Profit of € 2.50000, MAK Lid. forty sition 1s rece ea Ne Pot & Lass Account 30 ended 31.3.2021, showed aug commision nga HS SHES int hay, |) TH PE occa Elin te ai (5) Legal exposes ncude © ring his Ey, Hon wiht 0 emcs h renpato Money wi the ftoning ews anes ei fr ¥ remises, the expan aren the em ea (ao Te Depeion pred ip ges Pages rt a agg th ‘computed under the In : d Fe ames hang Powe, ean pe ier was i comps nes T - (oom a actor sean 2.22 Foo veya rly oo of it Te como ata Li (0 tore he Ta ang ga 3 saa hl ss artic 1Srcinn somPty pey e eite oas olution: ompaatin asses Ye ELT? amid by the Tigges Some earl eases, Their appeals : (iv) ©3000 paid for le payment o [(A) Business Prof (v) © 500 being fine impos Professional Tax as penalty Interest Protas per P& L Account c Posed by the Munialty Ce res chaeaiunster s ee at a, a i is Drea by MeCooit sth Pt se hes Profiton Sake of Buildin jen tom un inched (0 Cony xin Subsidy in pense dowel : in pan 0.900, Add Epes Slowed a iy plang Gi) Unit Trust of India of Univ 2 a {0 Capa expenire on posing 8.000 25000. Seong employes 8 dallond (Sez. 36(0)@)] 8 (e)_ Hisalso observed that bt the opening stock of 5, ) Fines kes 5s00 £18,000 ar andere by Loon Ot ae casing sok of 6) inane Ta ; nut te ol come Grae kit Comisve #5 daloved (Se 35D) $000 Cone th ang rh asset er 20-22 (8) Doraons 45000 |_1.16010| tt cena ney eects Profit & Gains of Business 340000 cs Ye te fear, come of Manak Lig, |(B) Income from Capital Gain for the Assessment Year 2021-22 Shore Capa Gan oto) [Ay Tame Tom Basins tc) income trom Other Sourees Pri as por Profit & Loss ae Dien mcs compos Exe) come |] Reet tom ovo A Lat be neteuiow Batam ase Dress fom UTI ee 2am (aden) Gros Toa ncome aoa bce: Datos towed fm GTI us 300 Add; Wert be aed 7 Daraton wo PM Deosi Rel Fund 20000505) 10.000 (a) Reserve for ba dhs tg sn att os 15000 Doran fr aly ping (102) 15000 {0} Pony nos ode ingyen of pfeil tx 3.00 Donation to Charitable Trust for Mustim girls Nil (©) Fine imposed by the Municipality for violation of ta fcome tutto so allowable 500 (4) ees on money borowed for expan ne Working Notes: (i) As director isnot found guilty, legal expenses incured to save director wil be allowed as busines expenses because it was incurred to save prestige oF Less: Additonal dep. allowable as per LT.Aet 150,000 ~¥ 50,00) uit: Unulervatuation of stock 108,000 -% 9,000 j een Gi) Gain onsale of machines is shorter capital gain as whole of the asta this eroup ae sol Sera ee een Business tome Dividend’ fom domestic compas é (0) tncome trom Other Sources es isnot exempted, Divider fom Us Tas. of Ini is alo exempt. eee (a) Dividend vom Units 25.000 {09 Dividend fr Subs in pon 10.000 | _35.000 Tota agome Go Under ne fs cmmison nny exp) ws 5a aly plait xpi W830) ae Het est eapess cha aloned #3 Scanned with CamScannerSe ee ne an ain Cm otra r heya stent searing Nach eka ey “The eredits incl fom A 1 : Ther a ie i dso Sen os Ln of a harm 8 NE ey () & 15,000 received 38 3 : garg Ld ot Being a domestic September 2020 wits of Rajastian Govern 2 (0) © 1,00 reeved (@) © 10,00 recived i ont sransfer of (6) © 10000 gains ring om as (8 © 30.000 gains asing ov wast 10,000 from shares WS WIA. ar (@) 7 5,000 interest on fixed deposits wit “The debits include: (a) € 4.00000 donated toe nd Nas Minister's Drought Reif Fund and charitable Instinion. (0) © 3,000 spent by the co cus Indi for Cement manta by 1 In Ge) € so sent on te conten of sie esearc laboratory, oceans Toa income andthe Tal Income ofthe Company. Assume jy the Company isnot admestc company andthe public are not substantially interest but it carries on whole ofits business in India Solution: Computation of Grass Total Income and Total Income forthe Aasesament Year 2021-22 vied from on Se Long Term Capital Asset, 3 sot Ten Capit ASSES, 1 ety kin India. ional Conse, & 100,000 tothe % 300,000 10 the approved Pais pany fr ening infomation resting may, T, Tacome from Business Net Profit as per Profit and Los Account Adi: Expenses disallowed (2) Donation to Indian National Congress (©) Donation to Prine-Minister’s Drooght Relief Fund (c) Donation to Approved Public Cartble Institution Less: Income not taxable under the head — (2) Dividend from Agarwal Ld (©) Dividend from Sharma Li (6) Dividend from Garg Li, (@) Interest on Securities (6) Short term Capital Gains ( Long term Capital Gains (e) Interest from Bank Deposits Taxable Income from Business }2. Capital Gains : Short tem capital gains Short term capital gain ws 111A Long term capital gains SS. sess 331 ane Tam Oi Sra Bend from Agarval Li Mend rm Stoma L eien om Garg Li Dit rom Bank eps tae tm faa oe on Tol neon petyeis0 G68 @ ba 100% 0 4 US $0-G for Donations; © °° Suet 218.00 ‘Working Notes = 1) Dedosion ap 50% of @ 1.00000 (PMDRE) + ono agent) =S0% of€ Stony 2g ee 16000 = oN -€ 1,000 - ration 12 avdma Ld. manufac samen ar 2021-22. Te company en ats YOU atin preping thea em 21. You aT required to computes al ncaa nose ani eT 1. In 202021, tks of 5 coe ince ope off eae tea ted © pat ad as cal inde © 28900 ried on of contact eter note ornary (b) 2 2000 realised spray fm £200 ease ery fom prof atl wos spy seed any conc tobe spied by hi (©) © 60,000 being dividends y e000 ig dies elf fan cay ot Sas 3, Inert dbiedo pai an low acount bce of (@) Payment of nest or te ing of tof income forthe asessmen year 2019-20 10,000. Gi eo : (©) Payment of itt on mene bowed fom bank for orchaseof fd foreonstuctng a bulding frown adiisraive oe & 3,00. (©) Payment of intrest on overt with bank wiled for payment of dividends ® 20.000 4. Sabres and staf wel inl: (@) Expenditure of copa aur incare fo te pros remoting fai planning amongst employes 80000 (&) Contibation to Goverment for constuction fh cee a the company's faery wher its employes ae allowed to have weament long wi he members of publi € S000. (e) Salary of foreign technicians realnd on conrat bass to sty and Suggest inproved meio of proucon€ 7500. Repairs and maintenance inl (arrayed ured on pent of wom ou ates se of te Tacory shed with ew sets ©4000, (o) Reps to compound wall clase tf heavy 6 Trade expenses inci: (a) Expenditure incured on payment panes and adress ar ot evale st ins & 20,000 rent of seeret commission to persons Whose on records € 75,000. Scanned with CamScanner2 es * va i (Dona cen ses la 3p ee cmen epes8 B caren a of he emit Ho . seid ger and Ne OMEN re on (the managing eso MARES or reach reply (© ey psa he Beng egos I dog for tack of enformiy pany defended isl A is employee,” fe irseion ented a eae ti sed € 20, (0) Capers ncred i ending a su fd by some sharcholdy tani ee is ns and arg a nee in EIT ca iy nb ee SEC compet SUSE Gu ann can hd lade os Com oer D2 vig oman ete Win yg * Sng 9. Solution : [A) tcome from Busnes: Profit as per Profit nd Loss Account Aad: Expenses not allowed (inca pane ae ing ef 415 of Capital expen on fil pln (i) See cobs payments det in absence of appropriate videos o prove the actual incuing expenditure (iv) Cost of erecting the statue ofthe founder ch es Income nat txable under this head Dividend fom foreign compan : ane Business Income (2) tncome from Other Source: Dividends from Foreign Company Gross Total Income Less: Deduction ws 80 ‘Working Notes = (Amount received on termination of comt received from supplier dae to short ‘income from trade (7) fmerest pid on oan borrowed to pay dividend and to purchase business asets is allowed as expenses. (ii) Expenditure incur to change compound wall, demurage to retrenciment compensation, health centr near factory. Of manufacturing regulations and Yo defend seth change in Antic of Asso rac in normal due course and penaly supply of raw material are treated as ‘Wor out asbestos sheets of factory, repairs of the Indian Railway, entertainment expenses, contribution to Government for construction of nt of Companies ost 53 sts" a ee etna ses she ta poi andl "PEE et ng an pe of So. Palate om mgt a Feng iy $e Te selon ons fone TP Te hn ote compu the ys the sempre te Sporn ee company ote Pet ge MET gy int Ph com dag (0 Gosingsteck war atc a feted tht Tit ne Tom yen you trtha ett ay TG Mt t (0 GOI te Pe boing taken on fate. Baring *: of 190.0 en extension of FF 1.90,000 was debited by the iw cost att 9 opt hi merhog fompany in 9F 80,000 received from an Indian time, Company had to pay penalty for 4 months delay @ & 3:000 pet snot a5 TE seme wih he Goverment (e) © 8.000 deposit made under own telephone theme. (@) &5,000 being interest ai to bank on monies borrowed to pay income, (c) & 12,000 paid for shitting of business premises from the origina site to the present site which is more advantageously located, ‘Compute the total income of the company fo the asessment year 2021-22. ‘Computation of Total Income of Manasvi Ltd. Jor the Assessment Year 2021-22 sotuti Tass co Je rota por Poi nd Lae Nd Expenses Disallowed th penta on extension of bung (i deduce a onal expendi) i nero on mois borowe one and whan in Shiting expos ot distil expend ft oe ces bg (ii) Dividend (not a business a tacome |(B) Income from Other Sources : Dividend from an Indian’ scanned with CamscannerDire rey By cue ron of losing stock as, i There will be wo adjust is method. wis 37 (0 of the Act the total Icom, rs. Compute of, ult este fatiowins F ee cring Perak IMIS OF 3 company forthe agen 1 2212 og fe OEE 2S ao pd mo ES Son ah a et oS mn nots Fr rene € 00) BESO 17 7s Ain ratsrcstasns ss tea ‘ae 2, Shem cpl Can 30 3 Longter Copal in s 3 Linger Cops Cree CapaL LS ent year 2017-18 $4) Fees aera ee ep to oft aoe & Geeta fom Govern Se a 5: Bank commision te fr easing oe Pooja Lid. sont one oe 7 2021-22. vite Assessme e z (A) Income from Business: 31,$0,000 Business Income 150,000 Less: Depreciation 730,00,000 Less: Brought forward busines ass Lees: Unabsorbed depreciation Income from Business Income fom Capital Gains Shor-ierm Capital Gains {Long-term Capital Gains o Less: Brought forward shorter Capital Loss ‘Less: Brough forward longterm Capital Loss (C) Income from Other Sources: Interest on Government Securities ess Bank Commission Gross Income before Unabsorbed Depreciation ‘Less: Unabsorbed Depreciation (7,50.00-8 50,000) Gross Tota Income Less : Deduction ws 80, Total income Working Notes: (6) Tehas been assumed that profit of 8 31,50,000 is arrived. (on late payment of Sales Tax 831,000 and in after changing interes i) Interest pion Ine payment of Sales Tax is st paid on deposits & 2,000 allowed a expenses - of Companies yor 3 $33 nts ‘Ltd. is an Indi te ara aeecatea eo (a) Penalty paid for def in ist of it installed during the year (i cota npn ar al eye (Seu frre ean ee hen on tour for purposes of busines :& 20099. So™Para’s employees: Payment of sales tax: & 10,000 purpose of attending on him), i) Annual premium pid for personal ace ae eat noma nse ply tlen by the ai) Interest on deposits received by the io | posts received by the company from publi € 50,000; (vii) Security deposit paid fr telex connection :& 10,000 year 202 Solution (Gx) Interest paid on money borowed fam bank for purchase of shares in P. & G. Lid, Ine. a company inoxporated in New York: ® 20.000 (9) Salary, ete, paid t0 Shri Ravi, he executive dcetr: () Safar : & 96,000, i) Commission on sles: & 20:00, (i House rent allowance : & 24,000, (Gv) Travel concession forse and wife in connection with his proceeding on leave to his home district : € 10,000 (9) Rem for office premises of the company owned by the dtetor : & 24000 (ai) Salary, et. paid to Shri Pankaj, an accounts officer salary +8 90:000, bons 20,000, house ret allowance : & 18000, special allowance :€ 10,000. (ii) Depreciation of plant purchased during 020-21; &3,00,000 (ie, deprecation @ 25% per cent of cos of 12,0,00) {(B) Credits to profit and toss account inchdes ® $0,000 dividend received from P,& G, Lud. a foreign company ‘You are required to compute the total income ofthe company for the assessment Computation of Total Income of Simmy Ltd ithe Assessment Year 202122 lay ko ki Income from Bus Profit as por Profit and Loss Account 1200 Aud: inadmissible Expenses Penalty pid for default in payment of ses tarot aissible deduction ‘Cost of machinery purchased and installed daring the 10.000 45,000 ear is eligible for depreciation Scanned with CamScanneri cme etme meer se eG man La0.000, thr mabe a ate wile of ay Focpnmn oes gl fe aurcnse pon use Ahecommpay's ines asters 7 +) interest ow money bariowed fee "000 + & 30.00) | 3.30,000 | sty Dypectanen on a & Metra 1e0-eame Not Chargeable dr sd ais Dividends frm Foreign COMPS? [Les : Allowable Depreciation ws 321)" 9 19 45,000 Ped onal Depron Pa To of 1248000) | 242.000 ‘anal Deen on en Pst 2 1 js" Dea pe Crs ETT) 50,000 20,000 (2) Income from Other Source : Disidends from Foreian Company Less Interest on Boring for purchase of shares ota Income es: Deductions 89 ae Total Income ‘Working Notes ‘Rent paid fr hous in Delhi premium pid on personal accident policy and seeyy -posits for Telex connection are allowed as expenses. Fa. pate Een) apes ® Sm pr aman, “SY Sr en agg, 28 HP A ls eon (ii) ec of & 75,000 for supply of know-how in the (Sta rae teens coor a i uring the year ene for? 20007 Ws emp fon April 1. 2020 ee sy Credited 19 pal oo psi Depreciation em ala che (0) pe basis charged w pote ae m3 Ania (ay Deprecated alu of avate on Machinery :? 1500000 trae og Pont et (Rate of depreciation «tom einen 6) Mastand Mathie sins pe poral deprecation 213% on Se oe 2020). ae Plan and Machinery (clr wt prea (0) routed 19 2.000 (ae roa es es ng ‘working, date of installation : 18 May, 2095) no" ST and 3 si Computation of Tota tcomeof ates Li, forthe Asesmen Var WH sottion = sacome from Busines an Profit & Loss A e meats per Poi & Lave Account pas {),Cosof stool buling being ial pendence Gatoned | lant ©, Depreciation ten off sepals concent naa 1 Depeiaton onal « hao a- Normal Depeeiton on allases poe s+ aitional Deprecietion on Plnt& Machinery = {20° of 120000) a BasinsTeome 96000) . Gross Total Income cess: Deductions vis 80 Total income “Forking Notes : a Ii) Penalty recovered by purchase, salaries and perquisites to managing director, salaries and perquisites to foreign technician, interest pad on loan to purchase machinery Fepenses on foreign trp of managing director are allowed as expenses and expenses on foreign tip on Fi Normal Depreciation on various assets calculated 5 Gera ee ————T Building | Pant nd | Pant and Block of Assets Reet ec Sea rect ise nee z z | z sssoow | — te down on Ap sn | a Add : Cost of assets acquired during the year Less: Sale proceeds fast sl ing the year Bstnce : Amount of Normal depreciation Tol allowable normal Dereon scariied with CamScanner