https://www.taxtmi.com/caselaws?id=25012 Surtax levied on chargeable profits after income has accrued is an application of profits, not expenditure incurred wholly and exclusively for business purposes. Because liability arises only after profits are earned and is computed by reference to income determined under the Income-tax Act, surtax cannot be deducted in computing business income under section 37. Having found no deduction available under section 37, examination of the separate exclusion for taxes on profits or gains under section 40(a)(ii) is unnecessary. The principle distinguishes post-profit taxes from outgoings incurred in earning business income. en-us Mon, 28 Mar 1988 00:00:00 +0530 Sat, 23 Jan 2010 17:39:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25012 Surtax levied on chargeable profits after income has accrued is an application of profits, not expenditure incurred wholly and exclusively for business purposes. Because liability arises only after profits are earned and is computed by reference to income determined under the Income-tax Act, surtax cannot be deducted in computing business income under section 37. Having found no deduction available under section 37, examination of the separate exclusion for taxes on profits or gains under section 40(a)(ii) is unnecessary. The principle distinguishes post-profit taxes from outgoings incurred in earning business income. Case-Laws Income Tax Mon, 28 Mar 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25012