Bombay H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that in the computation of the capital of the assessee-company for purposes of surtax under the Companies (Profits) Surtax Act, 1964, no reduction on account of the relief obtained by the assessee in its income-tax assessments under s. 80J of the IT Act, 1961, was to be made and that r. 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, was not to be applied for making any proportionate reduction on such account ?

Counsel Appeared

V. R. Bhatia, S. V. Naik & K. C. Sidhwa, for the Revenue : N. A. Dalvi i/b Crawford Bailey & Co., for the Assessee

T. D. SUGLA, J. :

The question of law referred to us in this reference at the instance of the Department reads thus :

“Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that in the computation of the capital of the assessee-company for purposes of surtax under the Companies (Profits) Surtax Act, 1964, no reduction on account of the relief obtained by the assessee in its income-tax assessments under s. 80J of the IT Act, 1961, was to be made and that r. 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, was not to be applied for making any proportionate reduction on such account ? “

2. Counsel are agreed that in view of this Court’s decision in the case of CIT vs. Century Spinning & Manufacturing Co. Ltd. 1977 CTR (Bom) 132 : (1978) 111 ITR 6 (Bom), the question must be answered in the affirmative and in favour of the assessee. Accordingly, the question is so answered. No order as to costs.

[Citation :185 ITR 620]