9911796707
TMI Blog1994 (11) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the capital base has to be proportionately reduced in relation to the deduction allowed under Chapter VIA of the Income-tax Act, 1961, in computing the capital under rule 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 ? 2. Whether, on the facts and in the circumstances of the case, the total amount of donation should be taken as the basis for computing the profits under rule (1) of the First Schedule to the Companies (Profits) Surtax Act, 1964, or whether only the maximum amount allowable under section 80G of the Income-tax Act, 1961, should be taken as the basis ?" The first question is covered by the decision of the Supreme Court in the case of Second ITO v. Stumpp Schuele and Somappa P. Ltd. [1991] 187 ITR 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total Income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section. (i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum specified in sub-clause (vii) of clause (a) thereof, an amount equal to the whole of such sum plus fifty per cent. of the balance of such aggregate; and (ii) in any other case, an amount equal to fifty per cent. of the aggregate of the sums specified in sub-section (2). (2) The sums referred to in sub-section (1) shall be the following, namely:-- (a) any sums paid by the assessee in the previous year as donations to-- (i) the National Defence Fund set up by the Central Government; or (ii) the Jawaharlal Nehru Memorial F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter, or two hundred thousand rupees, whichever is less: Provided that where such aggregate includes any donations referred to in clause (b) of sub-section (2) and such aggregate exceeds the limit of two hundred thousand rupees specified in this sub-section, then such limit shall be raised to cover that portion of the donations aforesaid which is equal to the difference between such aggregate and the said limit, so, however, that the limit so raised shall not exceed ten per cent. of the assessee's g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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