A.N. Sen, J. - (1.) In this application under Sec. 256(1) of the Income Tax Act, 1961, read with Sec. 19 of the Super Profits Tax Act, 1963, the following questions of law have been referred to this court : "(1) Whether, on the facts and circumstances of the case, the Tribunal was right in allowing the claim for deduction of the annual sum of Rs. 4 lakhs only to the extent allowed by it in the corresponding Income Tax appeal ? (b) Whether the Tribunal was right in not treating the following three items as 'reserve' within the meaning of Rule 1 of the Second Schedule to the Super Profits Tax Act, 1963, for the purpose of computing the capital of the assessee - (a) provision for taxation (b) proposed dividend (c) provision for bonus? "
(2.) In view of our decision in Income Tax Reference No. 169 of 1969 [Braithwaite & Co. (India] Ltd. v/s. : [1978]111ITR542(Cal) ] covering the question No. 1, raised in the present reference, we must hold for reasons stated in our judgment in the said reference that the Tribunal was not right in allowing the claim for deduction of the annual sum of Rs. 4 lakhs only to the extent allowed by it in the corresponding Income Tax appeal and the said question is accordingly answered in the negative, against the department and in favour of the assessee.
(3.) In view of our decision in the said reference, the first question has not been any further argued in the instant reference.;