9911796707
TMI Blog1996 (6) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... calculations:- Assessed income 19,66,180 Income-tax 12,38,693 ----------- 7,27,487 Less: Surtax levied (as per provisions of section 15 of the Companies Profits Surtax Act '64) 2,00,154 ----------- 5,27,333 ----------- Distributable income under section 109(1) of the Act. 5,27,333 Statutory % of dividend required 60% to be declared under section 109(iii)(3) Amount of dividend required to be declared under section 104 3,16,394 Less: Div ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess of amount, if any, which has been allowed in computing the total income." Their Lordships held that the said clause was applicable only to taxes which are in excess of the amount allowed in computation of total income of the company. As section 4 of Income-tax Act, 1922 specifically prohibited deduction of wealth-tax in computing total income, the wealth-tax could not be deducted while computing distributable profits also. This decision though given under a different statute does not support the case pleaded by the assessee as clause (b) of sub-section (1) of section 23A is quite similar to clause (b) of sub-section (1) of section 109 of Income-tax Act, 1961 now pressed before us (omitted w.e.f. 1-4-1988) but then in above decision, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be deductible from the total income of the company assessable for that assessment year.' This shows that, for the purpose of determining the income-tax payable on the total income, no deduction is allowed in respect of the sum payable as surtax, and the latter amount is deducted only when the distributable income of a company is computed for the purpose of sections 104 to 109 of the Income-tax Act. Any other construction would lead to double deduction of the same amount." It is settled law that special provision has to be preferred to a general provision. Section 15 of the Companies (Profits) Surtax Act has specifically laid down that surtax is deductible for computing surplus profit under sections 104 to 109 of the Income-tax Act. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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