1998 (2) TMI 6 - SC - Income Tax

Whether the Tribunal was right in law in holding that the statutory deduction under section 36(1)(viii) of the Income-tax Act, 1961, should be calculated on the total income before deduction of the amount allowable under the section - Held, yes

Summary

The Supreme Court upheld the Kerala High Court's decision regarding the calculation of statutory deduction under section 36(1)(viii) of the Income-tax Act, 1961. The High Court's interpretation was supported by other High Courts and subsequent amendments to the relevant sub-clause. The Supreme Court dismissed the appeals, agreeing with the High Court's decision in favor of the assessee.