https://www.taxtmi.com/caselaws?id=19739 Chapter VI-A deductions under the Income-tax Act are not amounts excluded from total income for rule 4 of the Second Schedule to the Companies (Profits) Surtax Act, so they cannot proportionately reduce capital employed. For surtax computation, the dividend component relevant to chargeable profits is net dividend income, not the gross receipt, so gross dividend is not deductible as such. Debentures issued to the public remained includible as capital under the Second Schedule because reduction applies on redemption, not on a company's purchase of its own debentures. The reference was disposed of accordingly, with relief on capital-employment and debenture-capital issues and the Revenue succeeding on dividend income. en-us Mon, 21 Feb 1994 00:00:00 +0530 Mon, 09 Nov 2009 13:35:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19739 Chapter VI-A deductions under the Income-tax Act are not amounts excluded from total income for rule 4 of the Second Schedule to the Companies (Profits) Surtax Act, so they cannot proportionately reduce capital employed. For surtax computation, the dividend component relevant to chargeable profits is net dividend income, not the gross receipt, so gross dividend is not deductible as such. Debentures issued to the public remained includible as capital under the Second Schedule because reduction applies on redemption, not on a company's purchase of its own debentures. The reference was disposed of accordingly, with relief on capital-employment and debenture-capital issues and the Revenue succeeding on dividend income. Case-Laws Income Tax Mon, 21 Feb 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19739