Deductibility of income tax on excess dividends not allowable for company surtax, prompting review of completed assessments.

Deduction of income-tax on distribution of excess dividends is not allowable when computing chargeable profits for the Companies (Profits) surtax; Revenue Audit identified under-charges where this exclusion under Rule 2(i)(b) was not applied, and officers are directed to review completed assessments and report, ensuring corrective action is not time barred.

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