Law:

Section:

JUDGMENT Kantawala, CJ.—The questions that are referred for our determination are as under: "1.Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the entire Dividend Equalisation Reserve amounting to Rs. 83,01,416 should be included in the capital computation without deducting the amount of dividend paid out of such reserve ? 2.Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 12,85,500 being the proposed dividend on preference shares could not be treated as a liability to be excluded from the capital base for the purpose of statutory deduction under the Companies (Profits) Surtax Act, 1964? 3.Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that, (i) provision for taxation in excess of the liability finally determined, and (ii) provision for gratuity of Rs. 99,294 should be treated as reserve for inclusion in the capital computation for the purpose of surtax assessments ? 4.Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the capital should be increased to the extent of bonus shares issued out of the general reserve even though the entire amount utilised for issue of bonus shares out of the general reserve has already been included in the capital ? 5.Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that rule 4 of the Second Schedule to the Surtax Act, 1964, is applicable only to a case where a part of the 'income of a company is not includible in its total income by virtue of the provisions contained in Chapter III of the Income-tax Act, 1961, and not a case where a part of the income of the company is not included in its total income by virtue of that part of the income being allowed as deduction under section 84/80J of the Income-tax Act, 1961 ?" These questions relate to the assessment year 1967-68, for which the previous year was the calendar year 1966. As questions Nos. 1 to 3 are already covered by the decisions in the earlier matters already disposed of, the facts necessary in respect of them need not…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492