https://www.taxtmi.com/caselaws?id=25348 Surtax paid under the Companies (Profits) Surtax Act, 1964 was held not deductible in computing business income under the Income-tax Act, 1961. The charge was treated as a tax on chargeable profits, and section 40(a)(ii) disallows any sum paid on account of a tax levied on profits or gains or assessed on the basis of such profits or gains. Because surtax was imposed on profits, it fell within that disallowance and could not be claimed as a business deduction. The result was against the assessee and in favour of the Revenue. en-us Tue, 04 Aug 1987 00:00:00 +0530 Thu, 28 Jan 2010 10:55:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25348 Surtax paid under the Companies (Profits) Surtax Act, 1964 was held not deductible in computing business income under the Income-tax Act, 1961. The charge was treated as a tax on chargeable profits, and section 40(a)(ii) disallows any sum paid on account of a tax levied on profits or gains or assessed on the basis of such profits or gains. Because surtax was imposed on profits, it fell within that disallowance and could not be claimed as a business deduction. The result was against the assessee and in favour of the Revenue. Case-Laws Income Tax Tue, 04 Aug 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25348