Mohan MeakIn Breweries Ltd. Vs. Commissioner of Income-tax - Court Judgment

SooperKanoon Citationsooperkanoon.com/889458
SubjectDirect Taxation
CourtHimachal Pradesh High Court
Decided OnOct-17-1996
Case NumberIncome-tax Reference No. 1 of 1982
Judge M. Srinivasan, C.J. and; Kamlesh Sharma, J.
Reported in[1997]227ITR633(HP)
ActsCompanies (Profits) Surtax Act, 1964
AppellantMohan MeakIn Breweries Ltd.
RespondentCommissioner of Income-tax
Appellant Advocate K.D. Sood, Adv.
Respondent Advocate Inder Singh, Adv.
Excerpt:
- m. srinivasan, c.j. 1. the question referred to this court is : ' whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the surtax payable by the assessee under the companies (profits) surtax act, 1964, for the corresponding surtax assessment year cannot be allowed as a deduction in computing its total income ?' 2. the supreme court has now held in smith kline and french (india) ltd. v. cit : [1996]219itr581(sc) that the said payment cannot be allowed as deduction in computing the total income for the corresponding year. while doing so, the supreme court has affirmed the judgment of the kerala high court in a v. thomas and co. ltd. v. cit : [1986]159itr431(ker) and reversed the judgment of the gauhati high court in makum tea co. (india) ltd. v. cit . 3. in view of the judgment of the supreme court this question is no longer available for discussion in this court. hence, the reference is answered by holding that the tribunal was right in holding that the surtax payable by the assessee under the companies (profits) surtax act, 1964, for the corresponding surtax assessment year cannot be allowed as a deduction in computing its total income. 4. reference is ordered accordingly.
Judgment:

M. Srinivasan, C.J.

1. The question referred to this court is :

' Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the surtax payable by the assessee under the Companies (Profits) Surtax Act, 1964, for the corresponding surtax assessment year cannot be allowed as a deduction in computing its total income ?'

2. The Supreme Court has now held in Smith Kline and French (India) Ltd. v. CIT : [1996]219ITR581(SC) that the said payment cannot be allowed as deduction in computing the total income for the corresponding year. While doing so, the Supreme Court has affirmed the judgment of the Kerala High Court in A V. Thomas and Co. Ltd. v. CIT : [1986]159ITR431(Ker) and reversed the judgment of the Gauhati High Court in Makum Tea Co. (India) Ltd. v. CIT .

3. In view of the judgment of the Supreme Court this question is no longer available for discussion in this court. Hence, the reference is answered by holding that the Tribunal was right in holding that the surtax payable by the assessee under the Companies (Profits) Surtax Act, 1964, for the corresponding surtax assessment year cannot be allowed as a deduction in computing its total income.

4. Reference is ordered accordingly.