https://www.taxtmi.com/caselaws?id=28488 Surtax under the Companies (Profits) Surtax Act, 1964 is a tax on profits levied after total income is computed under the Income-tax Act, 1961, so it does not represent diversion of income at source. Section 40(a)(ii) is treated as extending beyond income-tax to taxes on profits or gains, and the surtax is therefore not deductible in computing total income. The statutory scheme also indicates that any deduction for surtax is confined to the specific provision governing distributable income, and it is not allowable as business expenditure under section 37. en-us Fri, 15 Oct 1982 00:00:00 +0530 Tue, 23 Feb 2010 10:41:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28488 Surtax under the Companies (Profits) Surtax Act, 1964 is a tax on profits levied after total income is computed under the Income-tax Act, 1961, so it does not represent diversion of income at source. Section 40(a)(ii) is treated as extending beyond income-tax to taxes on profits or gains, and the surtax is therefore not deductible in computing total income. The statutory scheme also indicates that any deduction for surtax is confined to the specific provision governing distributable income, and it is not allowable as business expenditure under section 37. Case-Laws Income Tax Fri, 15 Oct 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28488