https://www.taxtmi.com/caselaws?id=37595 Rule 3(ii) of the First Schedule to the Companies (Profits) Surtax Act, 1964 applies only where commission, entertainment or advertisement expenditure has actually been allowed in the income-tax assessment and is then examined for excessiveness. If the entire expenditure has already been disallowed under the Income-tax Act, there is no basis to treat any part of it as excessive for surtax purposes, and the surtax computation cannot be used to reopen or vary the income-tax assessment. Prior approval of the Inspecting Assistant Commissioner is therefore not required on facts where Rule 3(ii) is not attracted. en-us Mon, 24 Apr 1978 00:00:00 +0530 Tue, 30 Mar 2010 17:51:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37595 Rule 3(ii) of the First Schedule to the Companies (Profits) Surtax Act, 1964 applies only where commission, entertainment or advertisement expenditure has actually been allowed in the income-tax assessment and is then examined for excessiveness. If the entire expenditure has already been disallowed under the Income-tax Act, there is no basis to treat any part of it as excessive for surtax purposes, and the surtax computation cannot be used to reopen or vary the income-tax assessment. Prior approval of the Inspecting Assistant Commissioner is therefore not required on facts where Rule 3(ii) is not attracted. Case-Laws Income Tax Mon, 24 Apr 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37595