TaxTMI 
TaxTMI 
1974 (7) TMI 2
X X X X Extracts X X X X
X X X X Extracts X X X X
....s were also taken at the same figure of Rs. 3,28,671. Thus, the super profits tax assessment followed the income-tax assessment. In the income-tax assessment the assessee claimed deduction to the extent of Rs. 44,237 before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner granted relief only to the extent of Rs. 6,984. The same relief was also granted in the super profits tax assessment. The assessments under the Income-tax Act as well as under the Super Profits Tax Act came ultimately before the Tribunal. The Tribunal confirmed the order of the Appellate Assistant Commissioner, rejecting the assessee's claim for deduction in relation to a sum of Rs. 15,550 being the expenses incurred by the assessee-company ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ible in computing the 'chargeable Profits ' for the assessment year 1963-64 under the Super Profits Tax Act, 1963, the corresponding income-tax assessment having become final ? " According to the learned counsel for the petitioner, section 2(5) of the Super Profits Tax Act has defined " chargeable profits " as the total income of the assessee computed under the Income-tax Act, 1961, for the relevant previous year, and there is no reference to the total income as assessed by the Income-tax Officer under the Income-tax Act as erroneously assumed by the Tribunal. The Tribunal, while interpreting the said section 2(5), has taken the view that under that section " chargeable profits " has been equated to the total income as computed by the co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he assessing authority under the Super Profits Tax Act also is the chargeable profits as defined in this Act. The words "chargeable profits ", it is true, have been equated to the total income of an assessee " as computed " under the Income-tax Act. According to the Tribunal the total income as assessed by the Income-tax Officer under the Income-tax Act should be taken to be the chargeable profits under the Super Profits Tax Act. If this interpretation were to be correct, then even if a mistake has crept in the assessment under the Income-tax Act and if the assessment becomes final, the assessment under the Super Profits Tax Act has to be on the basis of such a mistaken assessment made under the Income-tax Act. But this cannot obviously be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... income correctly computed in income-tax assessment proceedings will be taken as "chargeable profits" by the assessing authority under this Act. But, if a recomputation of the total income is found necessary for any reason, the Income-tax Officer may recompute the total income, again ,as per the provisions of the Income-tax Act. We have to, therefore, agree with the contention of the learned counsel for the assessee in this case. The learned counsel for the revenue would, however, contend that if such were to be the intention of the legislature in defining " chargeable profits " in the manner it has done, the legislature might have used a clear language as in rule (1) of Schedule I to the Excess Profits Tax Act, 1940. The mode of computa....