ESKAYEF NOW KNOWN AS SMITHKLINE BEECHAM PRARMACEUTICALS LTD vs COMMISSIONER OF INCOME TAX KARNATAKA-II BANGAALORE

The Supreme Court addressed the admissibility of surtax as a deduction in computing total income under the Income Tax Act, 1961, specifically referencing Section 37(3A). The Court held that the liability to pay surtax is not an admissible deduction, affirming the decision in the assessee's own case (219 ITR 581). Additionally, the Court ruled against the claim for deduction of expenses related to physician's samples, concluding that such expenditures fall under advertisement and publicity, thus not qualifying for deduction under the restrictive provisions of Section 37(3A). The civil appeal was dismissed with no order as to costs.