1992 (11) TMI 79

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..... f the Act, has referred the following two questions to this court : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal, was legally right in holding that the claim of the petitioner-company for allowance of surtax in the computation of the assessment of the company could not be claimed under the provisions of section 154 of the Income-tax Act, 1961 .....

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..... cted the claim of the assessee for two reasons. Firstly, it was held that no mistake apparent from the record had arisen since no claim had been made by the assessee for deduction of the surtax paid in the return of income. Secondly, it was held that section 40(a)(ii) of the Income-tax Act, 1961, specifically prohibited deduction of such an amount in the computation of income from business or prof .....

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..... hat the question of deduction of surtax liability in the computation of income from business or profession was a highly debatable issue and, therefore, it could not be the subject-matter of rectification under section 154. Secondly, even on merits, the Tribunal held that the claim of the assessee was rightly rejected by the Income-tax Officer and by the learned Commissioner of Income-tax (Appeals .....

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