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TMI Blog1988 (12) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... matter here concerns "chargeable profits" liable to surtax under the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as "the Act"), in the context of the income received by the assessee as dividend from other companies. The point at issue is whether, in the computation of the total income of the assessee, for the purposes of surtax, the gross dividend or only that which as is not exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee, and, consequently, while considering the case of the assessee for purposes of surtax, the Income-tax Officer deducted only 40 per cent. of the dividend received by the assessee from his total income in calculating the "chargeable profits" under the Act. The Appellate Assistant Commissioner, on appeal, however, allowed the claim of the assessee and included the entire amount of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le profits." It, inter alia, provides that in computing the "chargeable profits" of a previous year, the total income computed for that year under the Income-tax Act, 1961, shall be adjusted as follows : 1. Income, profits and gains and other sums failing within the following clauses shall be excluded from such total income, namely: (viii) income by way of dividends from an Indian company or compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; CIT v. Sundaram Industries P. Ltd. [1985] 151 ITR 769 (Mad) ; CIT v. Gwalior Rayon Silk Mfg. (Wvg.) CO. Ltd. [1984] 146 ITR 178 (MP) and A. V. Thomas and Co. v. CIT [1977] 110 ITR 515 (Ker). It is clear, therefore, that what had to be excluded were gross dividends. Such, thus, being the settled position in law, the reference is answered in the affirmative, in favour of the assessee and against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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