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<h1>High Court: Capital base not to be reduced proportionately for Chapter VI-A deductions.</h1> The High Court of Bombay ruled in favor of the assessee, holding that the Income-tax Officer could not reduce the capital base proportionately based on ... Company, Surtax The High Court of Bombay ruled in favor of the assessee, stating that the Income-tax Officer could not reduce the capital base proportionately based on deductions obtained by the assessee under Chapter VI-A of the Income-tax Act, 1961. The decision was based on a previous Supreme Court ruling. No costs were awarded.