1978 (8) TMI 10 - HC - Income Tax

Summary

The High Court of Calcutta considered a case involving the treatment of excess depreciation adjustment in surtax assessment for the year 1970-71. The Tribunal held that the adjustment amount could not be treated as part of the capital for statutory deduction purposes under the Companies (Profits) Surtax Act, 1964. The Addl. Commissioner directed the exclusion of the adjustment amount from capital computation, which was upheld by the Tribunal based on Explanation 1 to rule 2 of the Second Schedule to the Act. The court ruled in favor of the revenue, agreeing with the Tribunal's decision.