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Schedule II to Companies (Profits) Surtax Act, 1964 - Computation of capital - Assessment year 1975-76 - Tribunal held that reserve for contingencies and reserve for debenture redemption should be taken into account for purpose of computation of capital of assessee company under Act - Whether in view of fact that question relating to reserve for contingencies had been decided in favour of assessee in it's own case in earlier year, reference, Tribunal was justified in including said reserve for computation of capital of assessee for relevant assessment year as well - Held, yes. Whether, however, as regards reserve for debenture redemption, matter was to be remanded to Tribunal for re-examination in light of observation made in CIT v. Sijua (Jharriah) Electric Supply Co. Ltd. [1986] 158 ITR 332 - HELD, yes FACTS For the relevant assessment year, the Tribunal held that the reserves for the contingencies and the reserve for debenture redemption were to be taken into account for the purpose of computation of capital of the assessee company under Schedule II of the Act. On reference : HELD As regards reserve for contingencies, in view of the fact that said question had been decided in assessee's favour in it's own case in earlier year it was held that the Tribunal was justified in including the reserve for contingencies as a reserve for computation of capital under the Second Schedule. With regard to the question relating to reserve for debenture redemption, the court declined to answer the reference and remanded the matter to the Tribunal for examining the same in the light of observations made in the in CIT v. Sijua (Jharriah) Electric Supply Co. Ltd. [1986] 158 ITR 332. Note : The reference was partially allowed in favour of the assessee and partially remanded to the Tribunal. CASE REFERRED TO CIT v. Sijua (Jharriah) Electric Supply Co. Ltd. [1986] 158 ITR 332 (Cal.). B.K. Bagchi and S.K. Chakraborty for the Applicant. Miss Monisha Seal for the Respondent. JUDGMENT Suhas Chandra Sen, J.-The Tribunal has referred the following question of law under section 256(1) of the Income-tax Act,…

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