Balance Sheet

AS 572 views 2 replies

Can i deduct Misc Exp (assets) from reserves to get accumulated profit for section 2 (22)(e) of Income Tax Act..

Replies (2)

Dear Pravin,

Wonderful question Brother....

The term "accumulated profits"  has not been defined in the Act

SC has held that the term should be understood in it's "commercial sense"

Sec 205 of Companies Act says that "Dividend cannot be paid out of accumulated profits unless current losses are made good."


In view of above I think IT WILL BE DEDUCTED...

dear pravin

what type of mise exp not mentioned

strictly speacking as per schedule VI requriments mise exp can't dedected reserves and also your question is not clarity what type of reserves either capital reserve or general reserve

if general reserve P&L account ( debit balance) may be adjusted otherwise it can't be adjusted


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details