1991 (9) TMI 22

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....h of four original petitions is filed by the same assessee to income-tax. The petitions are filed under section 256(2) of the Income-tax Act, 1961 ( in short, " the Act " ), praying for direction that the questions/question formulated in paragraph 4 of the original petitions may be directed to be referred to this court by the Income-tax Appellate Tribunal (in short, "the Tribunal"). In Original Pe....

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....nder section 40A(5) ? (ii) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the liability to surtax was not deductible in the computation of income?" We heard counsel. The only aspect that arises for consideration is whether there is any referable question of law that has been posed by the petitioner. The first question f....

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....B]. The Full Bench has taken the view that surtax is a charge on income and is a levy on the profits and gains of the business. It is not an expenditure laid out or expended for purposes of business and so not an allowable deduction under section 37 or section 40(a)(ii) of the Income-tax Act, 1961. In view of the above Full Bench decision of this court in A. V. Thomas and Co. Ltd.'s case [1986] 15....