The Following Sums Shall be Deducted

company unless the business of the company consists, wholly or partly, of buying and selling any such property or assets.
However, where the amount for which any fixed asset is sold exceeds the written down value thereof referred to in Section 350, credit shall be given for so much of the excess as is not higher than the difference between the original cost of that asset and its wrinen down value.
3. The Following Sums Shall be Deducted
(a) all the usual working charges;
(b) directors' remuneration;
(c) bonus or commission paid or payable to any member of the company's staff,
or to any engineer, technician or person employed or engaged by the company, whether on a whole-time or on a part-time basis;
(d) any tax notified by t~e Central Government as being in the nature of tax on
excess or abnormal profits;
(e) any tax on business profits imposed for special reasons or in special cir
cumstances and notified by the Central Government in this behalf;
(ft interest on debentures issued by the company;
(g) interest on mortgages executed by the company and on loans and advances
secured by a charge on its fixed or floating assets;
(11) interest on unsecured loans and advances;
(i) expenses on repairs, whether to immovable or movable property, provided
the repairs are not of a capital nature;
(j) outgoings, inclusive of contributions made under clause (e) of sub-section (1)
of Section 293;
(k) depreciation to the extent specified in Section 350 which allows the following
deductions:
(i) the amount calculated with reference to the written down value of the
assets as shown by the books of the company at the rate specified in
Schedule XIV; and
(ii) excess of written down value over the sale proceeds or scrap value of the
asset if it is sold, discarded, demolished or destroyed before the deprecia
tion on such asset has been provided in full.
(/) the excess of expenditure over income in so far as such excess has not been
deducted in any subsequent year preceding the year in respect of which the
net profits have to be ascertained;
(m) any compensation or damages to be paid by virtue of any legal liability,
including a liability arising from a breach of contract;
(Il) any sum paid by way of insurance against the risk of meeting any liability
such as is referred to in clause (m); and
(0) debts considered bad and written off or adjusted during the year of account.
. The following Sums Shall not be Deducted
(a) Income-tax and super-tax payable by the company under the Income-tax Act,
1961 or any other tax on the income of the company not falling under clauses
(d) and (e) of (3) above; ,