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16. The company has also submitted statement Ex. 13 to show what amount would be required annually to replace loose tools. furniture, moulds, motor cars, laboratory equipment, etc. According to this statement, Rs. 15,986 would be required annually over a period of six years. But in my view no additional provision for replacement is required to be made in the case of loose tools, furniture, etc., because it appears from the assessment orders filed by the company that the provision for depreciation allowed according to the Incometax Act would be adequate for their replacement. It appears from the statement Ex. 52 about depreciation appended to the assessment order for 1954, that depreciation is allowed on moulds at the rate of 40 per cent and on tools at the rate of 12 per cent. Actually according to this statement Rs. 12.572 are allowed as depreciation on these articles. In my view this is an adequate provision for replacement, and nothing more can be allowed to the company. In the result, Rs. 0.14 lakh allowed as depreciation on buildings under the Incometax Act, Rs. 0.37 lakh for the machinery existing in 1947, Rs. 0.14 lakh allowed as depreciation under the Incometax Act, on machinery installed after 1947, and Rs. 0.12 lakh for tools, furniture, etc., should be allowed for the year 1954 by way of provision for rehabilitation and replacement of the plant, buildings, tools, etc. The total of these items would come to Rs. 0.77 lakh.

19. The annual provision for rehabilitation of the 1947 plant would be the same for the year 1955. Only the amounts of depreciation on buildings, post-1947 plant, and tools, etc., would be different. From the statement Ex. 10 appended to the assessment order for the year 1955, it appears that the incometax authorities had allowed depreciation on buildings to the extent of Rs. 0.13 lakh, on machinery installed after 1947 to the extent of Rs. 0.12 lakh, and on tools, moulds, motor cars, and furniture to the extent of Rs. 9,570. Thus the total provision for rehabilitation for the year 1955 would be to the extent of Rs. 0.72 lakh. It appears from the balance sheet for the year 1955 that Rs. 97,388 were provided as depreciation in the profit and loss account. The profit and loss account also shows that loose tools and equipment valued at Rs. 20,858 were written off. But it appears that the value of the loose tools and equipment is not shown on the right-hand side of the profit and loss account. They are shown as assets in the balance sheet on the right-hand side. The depreciation allowed by the incometax authorities also includes the depreciation on loose tools, etc. In my view, therefore, Rs. 20,858 should be added to the net profit for the purpose of bonus formula. The monthly basic wage bill for this year was Rs. 19,000. For this year also the workmen have been paid bonus equivalent to fifteen days' basic earnings. After making provision for prior charges it appears to me that in this year there was sufficient surplus to pay bonus equivalent to three months' basic earnings to the workmen. This amount would come to Rs. 57,000. Allowing bonus at this rate the calculations would be as under :-
Rs.
0.971 lakh net profit as per balance sheet. add 0.973 lakh depreciation provided as per profit and loss account. add 0.010 lakh donations. add 0.013 lakh value of footwear supplied free to Balvikas Samiti, Rajkot. add 0.208 lakh value of loose tools and equipment written off. add 0.22 lakh provision for bonus. ------- Total ... 2.395 lakhs. less 0.496 lakh statutory depreciation. ------- 1.899 lakhs. less 0.570 lakh bonus equivalent to three months' basic earnings. ------ 1.329 lakhs. less 0.576 lakh income tax at 7 annas in the rupee. ------ 0.753 lakh. less 2.230 lakhs additional provision for rehabilitation. ------ 0.523 lakh.