Surtax not deductible in computing total income under the Companies (Profits) Surtax Act, as settled by Supreme Court precedent.

Surtax payable under the Companies (Profits) Surtax Act, 1964 was held not allowable as a deduction in computing total income. The court followed the Supreme Court's settled view, which had affirmed one High Court position and rejected the contrary view, leaving no basis for a different answer on the reference. The legal principle applied is that liability to surtax for the corresponding assessment year cannot be treated as a deductible item in the computation of total income, and the answer was therefore against the assessee.

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Issues: Whether surtax payable by the assessee under the Companies (Profits) Surtax Act, 1964, for the corresponding surtax assessment year could be allowed as a deduction in computing total income.

Analysis: The question had already been answered by the Supreme Court, which held that such surtax payment is not allowable as a deduction in computing total income. The ruling followed the Supreme Court's affirmance of one High Court view and reversal of the contrary view, leaving no scope for a different answer in the present reference.

Conclusion: The surtax payable by the assessee under the Companies (Profits) Surtax Act, 1964, for the corresponding surtax assessment year is not allowable as a deduction in computing total income, and the answer is against the assessee.

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