RAJKUMAR MILLS LTD Vs. COMMISSIONER OF INCOME TAX
LAWS(MPH)-1980-8-18
HIGH COURT OF MADHYA PRADESH
Decided on August 19,1980

RAJKUMAR MILLS LTD. Appellant
VERSUS
COMMISSIONER OF INCOME TAX Respondents




JUDGEMENT

SHUKLA.J. - (1.)THIS reference made under S. 256(1) of IT Act, 1961, r/w S. 19 of the Super Profits Tax Act and s. 18 of the Companies (Profits) Surtax Act, 1964 relates to computation of "chargeable profits" for asst. yrs. 1963-64 & 1964-65.
(2.)MISC . Civil Case No. 377/1976 arises out of another reference at the instances of the same assessees for asst. yr. 1965-66 and raises a similar question and, therefore, this order shall cover and dispose of both the references.
For asst. yr. 1963-64, the Tribunal, Indore has referreed the following question for our opinion :

"Whether on the facts and in the circumstances of the case, the provisions:- could be treated as reserves for computing the capital for the purpose of super profits tax under the Second Schedule of the Super Profits Tax Act, 1963 for the asst. yr. 1963-64 ?"

(3.)FOR asst. yr. 1964-65 the question referred to us is: "Whether on the facts and in circumstances of the case the Reserve for gratuity of Rs. 4,41,769 and the reserve for leave with pay and wages of Rs. 4,41,769 and the reserve for leaves with pay and wages of Rs. 1,54,046 could be taken into account for the purpose of calculating the capital under the provisions of the Second Schedule of the Companies (Profits) Surtax Act, 1964 ?"


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