1991 (2) TMI 15

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....tal reference relating to the assessment of the assessee-company for the assessment year 1972-73, the Income-tax Appellate Tribunal has referred to this court under section 256(1) of the Income-tax Act, 1961, the following two questions of law which read as under : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the entire sum of Rs. 1....

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....the credit of the general reserves is to be included as capital for the purpose of computing chargeable profits under the Surtax Act. It is common ground, in view of the Supreme Court's decision in the case of Vazir Sultan Tobacco Co. Ltd. v. CIT [1981] 132 ITR 559, that this amount of Rs. 26,00,000 cannot now be included in the capital computation. The question is, therefore, answered thus: ....