ANANDJI HARIDAS & CO. PVT. LTD. vs ENGINEERING MAZDOOR SANGH & ANR.

The Supreme Court held that under Section 7(e) of the Bonus Act, a company cannot claim a deduction for direct tax at a rate higher than 55% when calculating available surplus, as the 10% concession in the Finance Act, 1966 does not qualify as a 'rebate' or 'relief' for development purposes. The Court emphasized that the clear language of the statute must be interpreted without reliance on external statements, such as the Finance Minister's speech. The appeal was dismissed, affirming the High Court's ruling that the applicable tax rate for the industrial company was 55%.