Suhas Chandra Sen, J. - (1.) The Tribunal has referred the following question of law under Section 256(1) of the Income-tax Act, 1961, to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the reserve for contingencies of Rs. 4,07,707 and the reserve for debenture redemption of Rs. 12,80,000 should be taken into account for the purpose of computation of capital under the Second Schedule to the Companies (Profits) Surtax Act, 1964, for the assessment year 1975-76 ?"
(2.) The assessment year involved is 1975-76. The question has been gone into and decided in the assessee's own case in an earlier year's reference being the case of CIT v. Sijua (Jharriah) Electric Supply Co. Ltd.
(3.) Following that judgment, the first part of the question relating to reserve for contingency is answered in the affirmative and in favour of the assessee.;