Mohan Meakin Breweries Ltd. vs The Commissioner of Income Tax

M. Srinivasan, C.J.—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 sur-tax payable by the assessee under the Companies (Profits) Sur-tax Act, 1964 for the corresponding sur-tax assessment year cannot be allowed as a deduction in computing its total income?

The Supreme Court has now held in Smith Kline and French (India) Ltd. and Ors. v. Commissioner of Income Tax 1996 ITR 219 , 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 Kerala High Court in A.V. Thomas and Co. Ltd. Vs. Commissioner of Income Tax, , and reversed the judgment of Gauhati High Court in Makum Tea Company (India) Ltd. and Another Vs. Commissioner of Income Tax,

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 sur-tax payable by the assessee under the Companies (Profits) Sur-tax Act, 1964 for the corresponding sur-tax assessment year cannot be allowed as a deduction in computing its total income.

Reference is ordered accordingly.