9911796707
TMI Blog1989 (2) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, Chandigarh, has referred the following two questions for the opinion of this court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that the sum of Rs. 2,00,000 standing against the narration, 'proposed dividend' in the relevant balance-sheets on the first day of the accounting period of each of the assessment years 1973-74 and 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the negative and on consideration of the facts and keeping in view the aforesaid decision, we are of the opinion that they are right. On the first day of the accounting year relevant to the assessment years 1973-74 and 1974-75, the assessee, a limited company, proposed a dividend reserve in the sum of Rs. 2,00,000 but when the facts were seen, it was found that the liability of the company for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erve be considered in computing the capital for the purposes of surtax under the Second Schedule to the Companies (Profits) Surtax Act, 1964, but the assessee's plea failed up to the Tribunal. On the basis of the decision of the Delhi High Court in Addl. CIT v. Minerals and Metals Trading Corporation of India Ltd. [1982] 134 ITR 78, counsel for the assessee has claimed 20% deduction on the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 1974-75. If, out of the reserve created on the first day of the accounting period of the assessment year 1973-74, something is left out after appropriation on the first day of the accounting period relevant to the assessment year 1974-75, on that amount, the assessee would be entitled to deduction of 20%. If nothing is appropriated and no further reserve is created on the first d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se observations we have to make because, on behalf of the Revenue, it was brought to our notice from para 22 of the order of the Tribunal that certain appropriations were made against the reserve of Rs. 5,000. These facts will have to be taken into consideration in the light of the opinion rendered by us on question No. 2. In view of the above, we answer question No. 2 in favour of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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