The judgment below is reversed, and the case is remanded to Busan High Court.

The grounds of appeal are examined.

1. Article 85 of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 18706, Feb. 19, 2005; hereinafter “former Enforcement Decree of the Corporate Tax Act”) by delegation under Article 49 of the former Corporate Tax Act (amended by Act No. 9267, Dec. 26, 2008; hereinafter “former Corporate Tax Act”) provides that “where a domestic corporation is divided, in principle, the amount that is not included in gross income or deductible expenses in relation to depreciation, appraisal under Article 42 of the Corporate Tax Act, and other tax adjustment shall not be succeeded to a corporation established by division” under Article 85(2)3 of the former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 18706, Feb. 19, 2005; hereinafter “former Enforcement Decree of the Corporate Tax Act”) shall not be succeeded to a corporation established by division, notwithstanding the provisions of paragraph (3).

Meanwhile, Article 23(1) of the former Corporate Tax Act provides that "The depreciation costs of fixed assets shall be included in deductible expenses in calculating the income amount for the relevant business year within the scope of the amount calculated under the conditions as prescribed by the Presidential Decree only where a domestic corporation appropriates them as deductible expenses for each business year (hereinafter "the scope of depreciation"), and the portion of the appropriated amount in excess of the scope of depreciation shall not be included in deductible expenses," and Article 32(1) of the former Enforcement Decree of Corporate Tax Act upon delegation under paragraph (4) of the same Article provides that "the amount in excess of the scope of depreciation (hereinafter "unapproved depreciation amount") out of the depreciation costs appropriated as deductible expenses for each business year by the corporation shall