1987 (8) TMI 64

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....wing, namely: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the surtax paid by the assessee-company was not allowable as a deduction in computing the total income under the Income-tax Act ? " The assessee, M/s. Associated Stone Industries (Kota) Ltd., is a public limited company. In respect of both these assessment years 1973-74 and 1975-76, the assessee claimed deduction of surtax liability determined on the basis of the assessee's income from business. This claim was not made before the Income-tax Officer but for the first time before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner allowed the assessee's claim for this deduction. However, on further ap....

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....tax Act, 1961, and adjusted in accordance with the provisions of the First Schedule. It is, therefore, clear that the surtax under this Act is to be charged on the chargeable profits during the relevant period of assessment, which means the total income computed under the Income-tax Act, 1961, deducting therefrom the permitted statutory deductions. The question is whether the amount payable as surtax by the assessee is, therefore, an amount not deductible by virtue of section 40(a)(ii), which reads as under : " 40. Notwithstanding anything to the contrary in sections 30 to 39, the following amounts shall not be deducted in computing the income chargeable under the head 'Profits and gains of business or profession' (a) in the case of any ....