1969 (2) TMI 11

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....income directed to be utilised for the hospital and the school was finally decided by this court in Commissioner of Income-tax v. P. Krishna Warriar. In these appeals the dispute relates to the special surcharge on income-tax and super-tax on the balance of the income directed to be given to the two thavazies in the account years relevant to the assessment years 1957-58 to 1961-62. After the original assessments were completed, on coming to learn that 15% surcharge on tax should have been levied in respect of the total income of the trust, which in his view was unearned income, the Income-tax Officer issued notices under section 34(1)(b) and assessed the trustees to special surcharge under the Finance Act, 1957 (2 of 1957). The order was ....

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....unt of income-tax ; and ... (b) A special surcharge on unearned income at fifteen per cent. of the difference between the amount of income-tax on the total income and the amount of income-tax on the whole of the earned income, if any included in the total income if such earned income had been the total income : ..." A similar provision is made for the levy of surcharge on super-tax in the case of every individual, Hindu undivided family, unregistered firm and other association of persons, at the rates prescribed therein and surcharge on super-tax is levied under the following provision ; "The amount of super-tax computed at the rates hereinbefore specified shall be increased by the aggregate of the surcharge calculated as under : (a....