Bombay H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that while computing the capital under r. 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the capital of the company should not be reduced in proportion to the deduction allowed under Chapter VI-A, viz.. under s. 80-1 of the IT Act, 1961 ?

Counsel Appeared

Dr. V. Balasubramaniam, J. P. Devadhar & K. C. Sidhwa, for the Revenue : Arun Sathe, for the Assessee

S. P. BHARUCHA, J. :

The question, raised at the instance of the Revenue, reads thus : “Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that while computing the capital under r. 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the capital of the company should not be reduced in proportion to the deduction allowed under Chapter VI-A, viz.. under s. 80-1 of the IT Act, 1961 ?”

Having regard to the judgment in CIT vs. Century Spg. & Mfg. Co. Ltd. (1978) 111 ITR 6 (Bom), this question is answered in the affirmative and in favour of the assessee.

No order as to costs.

[Citation :182 ITR 463]