HIGHWAY CYCLE INDUSTRIES LTD. VS COMMISSIONER OF INCOME-TAX
1991 P T D 79
[Punjab and Haryana High Court (India)]
Before Gokal Chand Mital and S.S. Sodhi, JJ
HIGHWAY CYCLE INDUSTRIES LTD.
versus
COMMISSIONER OF INCOME-TAX
Income-tax Reference No. 99 of 1980, decided on 15/11/1988.
Income-tax---
----Business expenditure---Computation of taxable income---Surtax is not deductible---Indian Income-tax Act, 1961, S.37.
Held, that the Tribunal was right in law in confirming the disallowance of the assessee's claim for surtax paid while computing its taxable income for the assessment year 1974-75.
Simon Carves India Ltd. v. C.I.T. (1988) 173 ITR 660 (Cal.); S.L.M. Maneklal Industries Ltd. v. C.I.T. (1988) 172 ITR 176 (Guj.) and Organon (India) Ltd. v. CIT (1988) 172 ITR 354 (Cal.) fol.
B.S. Gupta and Sanjay Bansal for the Assessee.
Ashok Bhan and Ajay Mittal for the Commissioner.
JUDGMENT
GOKAL CHAND MITAL J.--The Income-tax Appellate Tribunal, Amritsar, has referred the following question for the opinion of this Court:
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the disallowance of the assessee's claim for surtax liability while computing its taxable income for the assessment year 1974-757"
The matter is answered in favour of the Revenue and against the l assessee by a large number of decisions of various High Courts and the latest three decisions are Simon Carves India Ltd. v. CIT (198$) 173 ITR 660 (Cal), S.L.M. Maneklal Industries v. CIT (1958) 172 1TR 176 (Guj) and Organon (India) Ltd. v. CIT (19888) 172 ITR 354 (Cal.). Following the law laid down in these three decisions, we answer the question in the affirmative leaving the parties to bear their own costs.
Z.S./783/TQuestion answered in the affirmative.