CALCUTTA ELECTRIC SUPPLY CORPORATION LIMITED Vs. COMMISSIONER OF WEALTH TAX WEST BENGAL

JUDGEMENT

(1.) THESE appeals arise form the decision of the High Court of Calcutta in a reference under S. 27 (1) of the Wealth Tax Act, 1957 (to be hereinafter referred to as the Act). In that decision, the High Court was requested to give its opinion on two questions of law referred to it by the Income-tax Appellate Tribunal, 'B' Bench, Calcutta, Following the decision of this Court in Commr. of Wealth-tax v. Ramaraju Surgical Cotton Mills Ltd. 63 ITR 478 =(AIR 1967 SC 509), the High Court answered the second question against the Revenue. That decision has become final. At present we are only concerned with the first question of law referred to the High Court for its opinion. That question reads:

(2.) THE assessee is a Sterling Company incorporated in U.K. It carries on business of supplying electric energy in the city of Calcutta. During the year 1959-60, the corresponding valuation date being 31/03/1959, the assessee showed in its balance-sheet a deduction of 1b. 8,54,948 from the value of its total assets on the ground that the sum in question represents the contribution made by the consumers for putting up service connections. THE relevant portion of the balance-sheet reads thus:

(3.) THE High Court answered the question referred to it for its opinion against the assessee.