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TMI Blog1988 (11) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... surtax for the assessment years 1973-74, 1974-75 and 1975-76. The assessee-company, Oswal Woollen Mills Limited, was assessed to surtax for the three assessment years in question. In order to Work out the profits chargeable to surtax, the capital of the assessee-company had to be computed as per the Second Schedule to the Companies (Profits) Surtax Act and the interpretation of rule 4 of that Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludible therein and that while computing the capital, the proportionate amount would, therefore, be excluded on account of the deductions made under Chapter VIA of the Income-tax Act. He further held that deductions mentioned in that Chapter including the deductions allowed under sections 80J and 80G of the Act, represent a part of the income which is not included in the total income as computed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, after excluding from computation, the proportionate deduction on account of relief under section 80J of the Act was computed by him. The appeal against this order was later dismissed by the Tribunal by its order of May 20, 1978. This is what led to the following question being referred to this court for the opinion in respect of the three assessment years in question "Whether, on the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Stumpp, Schuele's case [1977] 106 ITR 399, the reasoning of which we respectfully agree with and accept and adopt. A similar view has also been taken in CIT v. Peico Electronics and Electricals [1987] 166 ITR 299 (Cal) ; CIT v. Schrader Scovill Duncan Ltd. [1981] 132 ITR 822 (Cal) and CIT v. J. K. Synthetics Ltd. [1983] 143 ITR 396 (All). There will be no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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