Suhas Chandra Sen, J. - (1.) In this case, M/s. Braithwaite, Burn and Jessop Constructions Co. Ltd. is the assessee and the assessment year concerned is 1967-68.
(2.) The Surtax Officer did not treat a sum of Rs. 23,27,500, shown as reserve for taxation in the balance-sheet of the company, as a reserve in the computation of the capital base for the purpose of surtax assessment for the assessment year 1967-68. He treated the amount as a provision.
(3.) On appeal, the AAC, following the Tribunal's decision in the case of the assessee for the assessment year 1965-66, treated this amount as a reserve eligible for inclusion in the capital base for surtax purposes. The AAC relied on the finding of the Tribunal that the provision for taxation was separately made by the assessee and that the reserve for taxation was in the nature of general reserve which had no relation with any accrued liability and, therefore, the character of the said reserve was that of a reserve and not of a provision.;