Procedure for consequential revision in cases where more then one direct tax involved.

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....edure to watch consequential revision in cases where more than one direct tax laws are involved. 2. The recommendation was made in the context of failure in one case to revise the income-tax assessment on the revision in appeal of interest-tax liability which is an allowable deduction in computing the total income under the Income-tax Act by virtue of section 18 of the Interest Act. In this reg....

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....under another direct tax law are as under:- i. Under rule 2 of the First schedule to the companies surtax Act, in computing chargeable profits, the amount of income-tax payable by the company has to be deducted. Therefore a modification in the assessment under the I.T.Act will require a consequential modification under the companies (profits) surtax act. ii. Under section 21 of the Hotel Rec....

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....nditure-tax will form part of trading receipt and the liability under the Expenditure-tax Act 1987 will be allowable as deduction. However by virtue of section 43 B of the income-tax act it will be restricted to the actual sum paid. In case of reduction of liability to the actual sum paid. In case of reduction of liability by way of appeal etc. the excess amount of expenditure-tax will be refunded....