1986 (6) TMI 11

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....6(1) of the Income-tax Act, 1961, the following questions have been referred as questions of law arising out of the order of the Tribunal for the opinion of this court : " (1) Whether, on the facts and in the circumstances of the case, the sum of Rs. 5,57,251 was allowable as a revenue loss having regard to the provisions of section 43A of the Income-tax Act, 1961 ? (2) Whether, on the facts....

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....case, surtax paid by the assessee under the Companies (Profits) Surtax Act, 1964, is an allowable deduction from the total income of the assessee ? " Of the above questions, question No. 3 has been referred at the instance of the Revenue. The other questions are referred at the instance of the assessee. The controversy sought to be raised in question No. 1 is covered by decision of this cour....

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....n value would be taken into account. The written down value of the assets has to be determined in accordance with the Income-tax Act, 1961. In the case of assets acquired during the accounting year, written down value means the actual cost to the assessee. In the case of assets acquired before the accounting year, written down value means the actual cost of acquisition less the aggregate of all de....

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....ction with the increase of the authorised capital of the company is capital expenditure and deduction thereof is not allowable under section 37 of the Income-tax Act, 1961. The controversy raised in question No. 5 is also covered by a decision of this court in Molins of India Ltd. v. CIT [1983] 144 ITR 317 (Cal). Following the said decision, we answer the question by stating that the surtax pai....