1984 (2) TMI 43

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....ivered by MRS. SUJATA V. MANOHAR J.-The assessment years under reference are 1964-65 and 1966-67, and the relevant previous years are Samvat years 2019 and 2021, respectively. Out of its profits for the accounting year, which is S.Y. 2018 (ended on October 28, 1962), the assessee had set apart sum of Rs. 13 lakhs as provision for taxation. The assessee had also in addition set apart for that ye....

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....dule to the Companies (Profits) Surtax Act, 1964. This finding has also been upheld by the Income-tax Appellate Tribunal. Questions Nos. 1 and 2 referred to us relate to these findings. In the assessee's balance-sheet as on October 24, 1965, that is to say, the last day of S.Y. 2021, a sum of Rs. 9,16,285 stood credited to the capital reserve account of the assessee, being realisations on accou....

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....ber 28, 1962, was eligible for inclusion in the computation of the capital of the company under the Second Schedule to the Companies (Profits) Surtax Act, 1964, for the assessment year 1964-65 ? (2) Whether, on the facts and in the circumstances of the case, the sum of Rs. 4,30,164 in the reserve for tax contingency account as on November 4, 1964, was eligible for inclusion in the computation o....

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....d, the assessee had made a separate provision for its liability relating to taxation. The amounts in question were additional amounts shown as a reserve for tax contingency. No part of these amounts has been utilised for payment of any tax, and in a subsequent assessment year, these amounts have been transferred to General Reserve These amounts are, therefore, a reserve and not a provision. Second....