https://www.taxtmi.com/caselaws?id=25362 Surtax payable under the Companies (Profits) Surtax Act, 1964 is not diverted at source by overriding title, because the liability arises only after income is earned and assessed; it remains part of the company's taxable income for computation. The surtax paid is also not deductible as business expenditure under the Income-tax Act, 1961, since section 40(a)(ii) bars deduction of tax levied on business profits and the payment does not qualify as expenditure laid out wholly and exclusively for business purposes. The stated conclusion is that the surtax is neither excluded from income nor allowable as a deduction. en-us Wed, 28 Jan 1987 00:00:00 +0530 Thu, 28 Jan 2010 11:27:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25362 Surtax payable under the Companies (Profits) Surtax Act, 1964 is not diverted at source by overriding title, because the liability arises only after income is earned and assessed; it remains part of the company's taxable income for computation. The surtax paid is also not deductible as business expenditure under the Income-tax Act, 1961, since section 40(a)(ii) bars deduction of tax levied on business profits and the payment does not qualify as expenditure laid out wholly and exclusively for business purposes. The stated conclusion is that the surtax is neither excluded from income nor allowable as a deduction. Case-Laws Income Tax Wed, 28 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25362