https://www.taxtmi.com/caselaws?id=26818 Surtax paid under the Companies (Profits) Surtax Act, 1964, is not deductible as business expenditure under section 37 of the Income-tax Act because it is a tax on chargeable profits, not an outlay incurred for carrying on business. The expression "for the purpose of the business" does not cover payments that arise only after profits are determined. Section 40(a)(ii) also bars deduction, as its prohibition on tax levied on profits or gains extends to surtax computed with reference to chargeable profits. The claim for deduction therefore failed on both grounds. en-us Wed, 29 Jan 1986 00:00:00 +0530 Mon, 10 Apr 2017 16:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26818 Surtax paid under the Companies (Profits) Surtax Act, 1964, is not deductible as business expenditure under section 37 of the Income-tax Act because it is a tax on chargeable profits, not an outlay incurred for carrying on business. The expression "for the purpose of the business" does not cover payments that arise only after profits are determined. Section 40(a)(ii) also bars deduction, as its prohibition on tax levied on profits or gains extends to surtax computed with reference to chargeable profits. The claim for deduction therefore failed on both grounds. Case-Laws Income Tax Wed, 29 Jan 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26818