SUJATA V. MANOHAR, J. - (1.) This is an appeal from a decision of the Calcutta High Court in a Reference made to it under Section 256 (1) of the Income-tax Act, 1961.
(2.) The assessee is a company and the accounting years involved are the years ending on 31-12-1962 and 31-12-1963 relevant to the assessment years 1963-64 and 1964-65 respectively.
(3.) For the assessment year 1963-64, the assessee claimed that for the purposes of Super Profits Tax Act, 1963, in the computation of its capital, a provision for taxation made by it to the tune of Rs. 16,48,888/- should be treated either as a part of its capital under Rule 1 of the Second Schedule to the Super Profits Act, 1963 or in the alternative as a deduction from the cost of investment under Clause (ii) of Rule 1 of the Second Schedule to the Super Profits Tax Act. 1963.;