India - Income Tax Act 2010 - Saarc

I.T. ACT, 1961 1.1032depreciation in accordance with those provisions and remaining undistributed or out ofboth or out of moneys provided by the Central Government or a State Government for thepayment of dividend in pursuance of a guarantee given by that Government :Provided that—(a) if the company has not provided for depreciation for any previous financial yearor years which falls or fall after the commencement of the Companies (Amendment)Act, 1960, it shall, before declaring or paying dividend for any financialyear provide for such depreciation out of the profits of that financial year or outof the profits of any other previous financial year or years;(b) if the company has incurred any loss in any previous financial year or years,which falls or fall after the commencement of the Companies (Amendment) Act,1960, then, the amount of the loss or an amount which is equal to the amountprovided for depreciation for that year or those years whichever is less, shall beset off against the profits of the company for the year for which dividend isproposed to be declared or paid or against the profits of the company forany previous financial year or years, arrived at in both cases after providingfor depreciation in accordance with the provisions of sub-section (2) or againstboth;(c) the Central Government may, if it thinks necessary so to do in the public interest,allow any company to declare or pay dividend for any financial year out of theprofits of the company for that year or any previous financial year or yearswithout providing for depreciation :Provided further that it shall not be necessary for a company to provide for depreciationas aforesaid where dividend for any financial year is declared or paid out of the profits ofany previous financial year or years which falls or fall before the commencement of theCompanies (Amendment) Act, 1960.SECTION 226(2) OF COMPANIES ACT, 1956Qualifications and disqualifications of auditors.226. (1) ** ** **(2) (a) Notwithstanding anything contained in sub-section (1), but subject to the provisionsof any rules made under clause (b), the holder of a certificate granted under a law in forcein the whole or any portion of a Part B State immediately before the commencement ofthe Part B States (Laws) Act, 1951 (3 of 1951) or of the Jammu and Kashmir (Extensionof Laws) Act, 1956 (62 of 1956), as the case may be, entitling him to act as an auditor ofcompanies in the territories which, immediately before the 1st November, 1956, werecomprised in that State or any portion thereof, shall be entitled to be appointed to act asan auditor of companies registered anywhere in India.(b) The Central Government may, by notification in the Official Gazette, make rulesproviding for the grant, renewal, suspension or cancellation of auditors’ certificates topersons in the territories which, immediately before the 1st November, 1956, werecomprised in Part B States for the purposes of clause (a), and prescribing conditions andrestrictions for such grant, renewal, suspension or cancellation.Audit of cost accounts in certain cases.SECTION 233B OF COMPANIES ACT, 1956233B. (1) Where in the opinion of the Central Government it is necessary so to do inrelation to any company required under clause (d) of sub-section (1) of section 209to include in its books of account the particulars referred to therein, the CentralGovernment may, by order, direct that an audit of cost accounts of the company shall be