https://www.taxtmi.com/caselaws?id=28568 Rule 2(i)(a) of the First Schedule to the Companies (Profits) Surtax Act, 1964 requires exclusion of income-tax only where tax is actually payable by the company on dividend income covered by rule 1(viii). If the dividend is wholly absorbed by interest attributable to the same shares, the dividend does not bear tax and no adjustment for income-tax is called for in computing chargeable profits. On the facts stated, no income-tax was payable on the gross dividend income, so nothing was required to be excluded from the tax component used in the computation, and the assessee succeeded. en-us Mon, 17 Jan 1983 00:00:00 +0530 Tue, 23 Feb 2010 16:20:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28568 Rule 2(i)(a) of the First Schedule to the Companies (Profits) Surtax Act, 1964 requires exclusion of income-tax only where tax is actually payable by the company on dividend income covered by rule 1(viii). If the dividend is wholly absorbed by interest attributable to the same shares, the dividend does not bear tax and no adjustment for income-tax is called for in computing chargeable profits. On the facts stated, no income-tax was payable on the gross dividend income, so nothing was required to be excluded from the tax component used in the computation, and the assessee succeeded. Case-Laws Income Tax Mon, 17 Jan 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28568