MOHAN MEAKIN BREWERIES LTD VS COMMISSIONER OF INCOME-TAX
1999 P T D 1810
[227 I T R 633]
[Himachal Pradesh High Court (India)]
Before M. Srinivasan C.J. and Ms. Kamlesh Sharma, J
MOHAN MEAKIN BREWERIES LTD
Versus
COMMISSIONER OF INCOME-TAX
Income-tax Reference No of 1982, decided on 17/10/1996.
Income-tax---
----Business expenditure---Company---Surtax---Surtax paid under Indian Companies (Profits) Surtax Act, 1964---Not allowable deduction in computing total income.
The surtax payable by the assessee under the Companies (Profits) Surtax Act, 1964, is not an allowable deduction in computing the total income of the assessee.
Smith Kiline and French (India) Ltd. v. CIT (1996) 219 ITR 581 (SC) fol
A. V. Thomas & Co. Ltd. v. C.LT. (1986) 159 ITR 431 (Ker.) and Makum Tea Co. (India) Ltd. v. CIT (1989) 178 ITR 453 (Gau.) ref.
K.D. Sood for the Assessee.
Inder Singh for the Commissioner.
JUDGMENT
M. SRINIVASAN, C.J.---The question referred to this Court is:--
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the surtax payable of the assessee under the Companies (Profits) Surtax Act, 1964, for the corresponding surtax assessment year cannot be allowed as a deduction in computing its total income ?"
The Supreme Court has now held in Smith Kline and French (India) Ltd. v. CIT (1996) 219 ITR 581 that the said payment cannot be allowed as deduction in computing the total income for the corresponding year. While doing so, the Supreme Court has affirmed the judgment of the Kerala Court in A.V. Thomas & Co. Ltd. v. CIT (1986) 159 ITR 431 (FB) and reversed the judgment of the Gauhati High Court in Makum Tea Co. (India) Ltd. v CIT (1989) 178 ITR 453.
In view of the judgment of the Supreme Court this question is no longer available for discussion in this Court. Hence, the reference is answered by holding that the Tribunal was right in holding that the surtax payable by the assessee under the Companies (Profits) Surtax Act, 1964, for the corresponding surtax assessment year cannot be allowed as a deduction in computing its total income.
Reference is ordered accordingly
M.B.A./2007/FC Order accordingly