TMI Blog1989 (9) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... hich reads thus : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the Appellate Assistant Commissioner's decision that the capital for the purpose of surtax assessment cannot be proportionately taken in accordance with the period of the previous year even though the previous year may consist of less than 12 months and in consequently, directing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital of the Company as computed in accordance with the provisions of the Second Schedule, or an amount of two hundred thousand rupees, whichever is greater: Provided that where the previous year is longer or shorter than period of twelve months, the aforesaid amount of ten per cent. or, as the case may be, of two hundred thousand rupees shall be increased or decreased proportionately." Und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t chargeable profits 1,50,000 1,50,000 1,53,575 ---------------- Surtax payable: 5% of the capital base, i.e., Rs. 6,00,000 at Rs. 30,000 at 25% 7,500 Balance of Rs. 1,23,575 at 30% 37,073 -------------- 44,573" ----------------- The assessee went up in appeal to the Appellate Assistant Commissioner and submitted that its capital base for the purposes of computation of it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f more than 12 months or less than 12 months. The capital base has to be computed without any reference to the proviso. Mr. Jetley, learned counsel for the Revenue, relied upon the judgment of the Madras High Court in CIT v. Madras Auto Service (P.) Ltd. [1985] 156 ITR 828. The previous year of the assessee in this case was of period of 8 months and 24 days. The Income-tax Officer, accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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