Depreciation and Current Repairs in Income-Accounting-Independent or Interdependent

Depreciation and Current Repairs in Income-Accounting Independent or Interdependent?
A Bagchi Income computation for tax purposes is supposed to allow for all expenditure incurred in earning it so that the incidence of tax falls on income only and not on any of the capital investment. An important component of these expenses is the 'user cost' of the capital employed in depreciable assets. Thus the depreciation allowance has to be adequate so as to enable the tax-payer to maintain his capital intact.