Chakravartti, C.J. - (1.) This is a reference under Section 66(1), Income-tax Act, by the Calcutta Bench of the Income-tax Appellate Tribunal of a question of law at the instance of the assessees.
(2.) The assessees are a company, called Braithwaite & Co. (India) Limited. The assessment year concerned is the year 1947-43, the relevant accounting year being the calendar year 1946. In the course of the assessment proceedings, the assessees claimed that a sum of Rs. 5,10,130/- which was the balance shown by their Profit and Loss account as on 1-1-1946, should be considered as a reserve within the meaning of Explanation (a) to the proviso to Paragraph D of Part II of the Schedule to the Indian Finance Act, 1947, for the purpose of the calculation of additional super-tax. The amount of Rs. 5,10,130/-was made up as follows ; JUDGEMENT_97_AIR(CAL)_1955Html1.htm
(3.) With respect to the second sum of Rs. 4,27,370/-, the Tribunal did not accept the assessees' contention and held that it could not be treated as a reserve. As the assessees have not disputed that finding and have not caused any question to be referred to this Court with regard to the aforesaid sum, we may leave it out of account altogether.;