Section 3. The net amount of income calculated in accordance with rule 2 shall be increased[1] [by the amount o

THE THIRD SCHEDULE. ==> picture [472 x 522] intentionally omitted <== THE COMPANIES (PROFITS) SURTAX ACT, 1964 ACT NO. 7 OF 1964 [2 nd May , 1964.] 3. The net amount of income calculated in accordance with rule 2 shall be increased[1] [by the amount of any expenditure] incurred on account of commission, entertainment and advertisement, to the extent such expenditure, in the opinion of the[2] [Assessing Officer] is excessive having regard to the circumstances of the case: Provided that the previous authority of the[3] [Deputy Commissioner] is obtained for holding such expenditure to be excessive. THE SECOND SCHEDULE [ See Section 2 (8)] RULES FOR COMPUTING THE CAPITAL OF A COMPANY FOR THE PURPOSES OF SURTAX 3. Where after the first day of the previous year relevant to the assessment year the capital of a company as computed in accordance with the foregoing rules of this Schedule is increased by any amount during that previous year on account of increase of paid-up share capital[2] [or is reduced by any amount on account of reduction of paid-up share capital,] or repayment of any such moneys, such capital shall be increased or reduced, as the case may be, by a sum which bears to that amount the same proportion as the number of days of the previous year during which the increase or the reduction remained effective bears to the total number of days in that previous year.