Payment of dividend out of p&l

According to icai manual .. even if a company declares profit out of accumulated profits(p&l surplus), the company has to follow the mandatory transfer to reserve rules... but when i read the bare text of rules it is clearly written that

Percentage of profits to be transferred to reserves.-

No dividend shall be declared or paid by a company forany financial year out of the profits of the company for that year arrived at after providing for depreciation in accordance with the provisions of sub-section (2) of section 205 of the Act, except after the transfer.................................................................

Please clarify