9911796707
TMI Blog1981 (9) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... at the instance of the assessee, Bombay Tyres International Ltd. "(1) Whether, on the facts and in the circumstances of the case, the profit and loss account surplus of Rs. 2,08,42,527 constitutes a reserve for the purpose of computation of capital in terms of rule I of the Second Schedule to the Super Profits Tax Act, 1963 ? (2) Whether, on the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under rule l of the Second Schedule to the Super Profits Tax Act, 1963 ? (5) If the answer to question No. 4 is in the negative, whether the excess reserve of Rs. 2,202 falls in the category of 'other reserves' referred to in rule I of the Second Schedule to the Super Profits Tax Act, 1963, and is, therefore, not to be included in the computation of capital to the extent the portion of the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,90,317. This is concluded against the assessee by a decision of this court in Shree Ram Mills Ltd. v. CIT [1977] 108 ITR 27. It has been held in the said decision that this would be a provision and not a reserve. The question will have to be answered accordingly. Question No. 3 concerns provision for gratuity in the aggregate amount of Rs. 20,51,526. It would appear from annex. G that Rs. 1,80, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 4 is required to be answered accordingly. The amount, therefore, is required to be considered as a reserve, and the question has to be answered in favour of the assessee. The questions referred to us are accordingly answered as follows Question No. 1 : The said amount of Rs. 2,08,42,527 would not constitute a reserve for the purpose of computation of capital. Question No. 2 : The amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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