Section 2(e) in The Companies (Temporary Restrictions On Dividends) Act, 1974
(e)" net profits" means net profits of the company as computed in accordance with the provisions of section 349 of the Companies Act, 1956 , (1 of 1956 ) subject to the modification that-(i) any income- tax payable under the Income- tax Act, 1961 , (43 of 1961 ) in respect of the profits as so computed or any tax of a similar character payable in respect of such profits under any law in force in any country outside India, and surtax payable in respect of such profits under the Companies (Profits) Surtax Act, 1964 , (7 of 1964 ) shall also be deducted; and(ii)depreciation shall be provided in accordance with the provisions of section 205 of the Companies Act, 1956 ; (1 of 1956 )
