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JUDGMENT Isaac, J.-This is a reference made by the Madras Bench of the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961, on the application of the assessee. The question referred is: "Whether the words 'income-tax' in the Finance Act, 1964, in subsection (2)(a) and sub-section (2)(b) of section 2 of the Finance Act, 1964, would include surcharge and additional surcharge?" This is a novel and interesting question; and its decision depends merely on the correct interpretation ol the relevant statutory provisions. This question has arisen out of an assessment for the year 1964-65. The assessee is an individual; and his total income was assessed at Rs. 45,173. This was made up of Rs. 42,635 under the head "Salaries" and Rs. 2,535 under the head "Other sources". This total income was charged to income-tax, super-tax and surcharges at the rates provided in the Finance Act, 1964. Sub-section (2) of section 2 of this Act provides that when the total income of an assessee not being a company includes any income chargeable under the head "Salaries", income-tax and super-tax payable by the assessee on the salary portion of the total income shall be the proportionate amount payable according to the rates provided in the Finance Act, 1963. Under the Finance Act, 1963, income-tax shall be increased by a surcharge, special surcharge and additional surcharge, while super-tax shall be increased by a surcharge and special surcharge in the manner provided in the said Act. But sub-section (2) of section 2 of the Finance Act, 1964, did not mention any of these surcharges. Therefore, the assessee contended that the salary portion of his total income was chargeable only to income-tax and super-tax, and not to any of the surcharges. The Appellate Tribunal rejected this contention, holding that income-tax and super-tax include the surcharges, and that the assessee was liable also to pay the surcharges as provided in the Finance Act, 1963, even though they were not specifically mentioned in sub-section (2) of section 2 of the Finance Act, 1964. The learned counsel for the assessee contended before us that, according to the scheme of the Income-tax Act and…

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