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TMI Blog1996 (3) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... t years to which the expenditure pertains and whether it also applies to fees paid for preparation of statements and schedules annexed to the return of income ? 2. Whether, on the facts and circumstances of the case, the value of the benefit derived by the employee could be substituted for the expenditure incurred by the assessee in assessing the disallowance under section 40A(5) of the Act ? 3. Whether, on the facts and circumstances of the case, surtax is an allowable deduction in computing the total income of the assessee ? " In so far as question No. 3 is concerned, the point that arises for consideration is whether surtax paid by the assessee can be claimed as a deduction while computing the total income of the assessee under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed upon the decision of the Calcutta High Court in the case of CIT v. Britannia Industries Co. Ltd. [1982] 135 ITR 35 and the decision of this court in the case of CIT v. P. R. Ramakrishnan [1980] 124 ITR 545. The above said two decisions were also dealt with by this court while rendering the judgment in T. C. No. 37 of 1983 (see [1996] 218 ITR 293). The order passed by the Tribunal is in conformity with the abovesaid decision of this court. Under such circumstances, in view of the decision of this court in T. C. No. 37 of 1983, dated February 9, 1995 (see [1996] 218 ITR 293), we hold that there is no infirmity in the order passed by the Tribunal on this aspect. Accordingly, we answer question No. 2 in the negative and against the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the determination of any liability under this Act, by way of tax, penalty or interest ; provided that no deduction under this section shall, in any case, exceed in the aggregate five thousand rupees. Therefore, expenditure incurred by the assessee in the previous year in respect of any proceedings alone can be allowed to the extent of Rs. 5,000. Inasmuch as even according to the assessee, Rs. 4,250 was incurred in the previous year, it can be allowable only under the present assessment year under consideration to the extent of Rs. 5,000. Expenditure relating to the earlier years incurred in the previous year cannot be allowed, if such expenses were not incurred in the previous year relevant to the assessment year under consideration. F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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