1988 (12) TMI 61

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....atter here concerns "chargeable profits" liable to surtax under the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as "the Act"), in the context of the income received by the assessee as dividend from other companies. The point at issue is whether, in the computation of the total income of the assessee, for the purposes of surtax, the gross dividend or only that which as is not exem....

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....f the assessee, and, consequently, while considering the case of the assessee for purposes of surtax, the Income-tax Officer deducted only 40 per cent. of the dividend received by the assessee from his total income in calculating the "chargeable profits" under the Act. The Appellate Assistant Commissioner, on appeal, however, allowed the claim of the assessee and included the entire amount of the ....

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....e profits." It, inter alia, provides that in computing the "chargeable profits" of a previous year, the total income computed for that year under the Income-tax Act, 1961, shall be adjusted as follows : 1. Income, profits and gains and other sums failing within the following clauses shall be excluded from such total income, namely: (viii) income by way of dividends from an Indian company or compan....