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Issues Involved:
1. Applicability of the Companies (Profits) Surtax Act, 1964, for the assessment years 1967-68 to 1972-73. 2. Classification of retained earnings and unremitted foreign income as reserves for computation of capital under the Super Profits Tax Act. Issue-wise Detailed Analysis: 1. Applicability of the Companies (Profits) Surtax Act, 1964: The primary question referred at the instance of the assessee was whether the Tribunal was justified in holding that the provisions of the Companies (Profits) Surtax Act, 1964, were applicable to this case for the assessment years 1967-68 to 1972-73. The assessee argued that the assessment under the said Act was without jurisdiction because the company had not been declared as a company under the C. (P.) S.T. Act, 1964. The court noted that this argument had been previously raised and repelled in Tax Cases Nos. 54 and 55 of 1974, where it was held that the definition of "company" under the I.T. Act would apply to the S.P.T. Act by virtue of s. 2(10) of the S.P.T. Act and s. 2(9) of the C. (P.) S.T. Act. The court emphasized that the declaration made under the Indian I.T. Act, 1922, would continue to hold good even after its repeal, and thus, the assessee would still be considered a company for the purposes of the C. (P.) S.T. Act, 1964. The court addressed the contention raised by the assessee's counsel, referring to the Supreme Court decision in Bengal Immunity Co. Ltd. v. State Of Bihar, which argued that a legal fiction created for one Act cannot be extended to another Act. However, the court found this argument unpersuasive, noting that sub-s. (9) of s. 2 of the C. (P.) S.T. Act explicitly adopts definitions from the I.T. Act. Therefore, the court concluded that the Tribunal was justified in holding that the provisions of the C. (P.) S.T. Act, 1964, were applicable to the assessee for the assessment years in question. 2. Classification of Retained Earnings and Unremitted Foreign Income as Reserves: The second issue, referred at the instance of the department, questioned whether the Tribunal was justified in law in holding that the amounts appearing in the balance-sheet of the assessee as retained earnings and unremitted foreign income were reserves for the computation of capital under the Super Profits Tax Act. The court referred to its previous judgment in Tax Case No. 58 of 1974, where it was held that such amounts were indeed reserves for the purpose of capital computation under the S.P.T. Act. The court reiterated that the amounts in question should be considered reserves, affirming the Tribunal's decision in this regard. Conclusion: Both issues were answered in the affirmative. The Tribunal was justified in applying the provisions of the C. (P.) S.T. Act, 1964, to the assessee for the assessment years 1967-68 to 1972-73, and in classifying retained earnings and unremitted foreign income as reserves for the computation of capital under the Super Profits Tax Act. As both parties failed to achieve their points, there was no order for costs.
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