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TMI Blog1983 (5) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... harge should be made since the assessee fulfilled the conditions laid down under the relevant Finance Act. The ITO was of opinion that in order to get the benefit of deduction of surcharge payable, the company should have made the deposit before 15-12-1976 in accordance with the provisions of section 2(6) of the Finance Act, 1976 ('the Act') read 'with section 3(1) of the 1976 Scheme. The ITO also relied on Board's circular No. 202, dated 5-7-1976 (Explanatory Notes on provisions relating to direct taxes) it is contained, inter alia, as under : " Although the rates of income-tax and surcharge thereon in the case of companies have been maintained at the existing levels, the Finance Act has provided that a company may, in lieu of payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elopment Bank of India (IDBI) under the 1976 Scheme, then the surcharge payable is to be reduced by the said deposit. The Commissioner (Appeals) after considering the submissions made before him as also going through the contents of the Board's circular mentioned hereinbefore held that the action of the ITO in not taking into account the sum of Rs. 15 lakhs deposited by the assessee on 15-12-1976, while levying surcharge, was perfectly justified, by observing as under : " I have carefully considered the arguments advanced by the learned representative and the submissions of the Income-tax Officer made above. The ITO had relied on the Board's circular No. 202, dated 5-7-1976, which had thrown some light on the subject said (sic) Scheme. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) on this point was fit to be reversed. The learned departmental representative, on the other hand, highlighted the reasons given by the Commissioner (Appeals) for upholding the action of the ITO in not taking into account the sum of Rs. 15 lakhs deposited by the assessee while levying surcharge. 17. We have heard the submissions made by both the parties before us, and considered the relevant provisions of the Finance Act as also the Board's circular. The Finance (No. 2) Act, 1977, fixing the rates of income-tax in respect of income liable to tax for the assessment year 1977-78 provides that where a company has made a deposit during the financial year 1976-77 with the IDBI under the Companies Deposits (Surcharge on In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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