TMI Blog1998 (6) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... at the instance of the Revenue which question arises out of the Tribunal's order regarding the assessment of the respondent-company under the Companies (Profits) Surtax Act for the assessment year 1980-81, is as to "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that the capital base under the Surtax Act should not be deducted in proportion t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This court in the case of Addl. CIT v. Bimetal Bearings Ltd. [1977] 110 ITR 131, has held that rule 4 is inapplicable to the deduction under Chapter VI-A of the Act. It was also observed in that decision that the words "not includible in the total income" used in rule 4 of the Act is referable to the income declared by section 10 of the Income-tax Act as not being included in the total income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions 32A and 35B of the Act are taken into account, and to that extent the income of the assessee is reduced for the purpose of taxation and constitutes income not includible in the total income of the assessee for the purpose of computation of the profits and gains under the Income-tax Act. Counsel also submitted that unlike Chapter VI-A of the Act which provides for deduction from gross total in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to in rule 4 is the total income calculated in accordance with sections 30 to 43A of the Act, in so far as the business income is concerned. The crucial words in rule 4 are " not includible in the total income". Only such income though derived by the assessee by way of profits and gains of its business as is not required to be included for the purpose of computing the total income under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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