TMI Blog1979 (11) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome from the grinding of wheat. For the previous year relevant to the assessment year 1970-71, it had " chargeable profits " liable to surtax under the Companies (Profits) Surtax, Act, 1964 (hereinafter called " the Act "). The total income of the company under the I.T. Act was determined at Rs. 17,66,820. By an order under s. 154 of the I.T. Act, the total income was determined as Rs. 17,64,730 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, namely, Rs. 2,25,734 should be excluded from the total income computed under the I,T. Act. This contention was not accepted by the ITO and he excluded only Rs. 89,894 because that was the only income by way of dividends which was included in the total income assessed. Being aggrieved, the assessee filed an appeal to the AAC claiming that the entire income by way of dividends should be exclude ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned counsel for the parties, we are of the opinion that no exception can be taken to the view taken by the Tribunal. We have gone through the provisions of ss. 2(24), 2(45), 80C(5) and 80M of the I.T. Act read with ss. 2(5), 2(8), 2(9), 4 and Sch. I, rule 1(viii) of the Act with the assistance of the learned counsel for the parties. It is not disputed that the provisions of s. 80M of the I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule of the Act and it was found as follows : " The definition of 'chargeable profits' provided in s. 2(5) of the Companies (Profits) Surtax Act, 1964, deals with the total income of an assessee computed under the I.T. Act and the total income is further required to be adjusted in accordance with the provisions of the First Schedule by excluding 'income by way of dividends'. When the legisla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of s. 80M but the said view was not sustained by the Supreme Courtin Cloth Traders P. Ltd's can [1979] 118 ITR 243. As would be observed, the provisions of r. 1(viii) of the First Schedule of the Act have to be interpreted so as not to include the quantum of dividend only but the category of the dividend. We are, therefore, of the opinion that the Tribunal was right in deciding the question and w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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