AI Structured Summary
Not yet generated for this judgment
Judgment
S.S. Sodhi, J.—The reference here is of two questions of law, one pertaining to the assessment years 1972-73 to 1975-76 and the other with regard to the assessment years 1974-75 and 1975-76. The question raised with regard to the former being :
"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that under Rule 1 (viii) of the First Schedule to the Companies (Profits) Surtax Act, 1964, the gross dividend and not the, net dividend which actually formed part of the total income of the assessee was to be excluded from the total income of the assessee computed for the purposes of the Income Tax assessments ?"
As regards the latter, the question referred reads as under :
"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in affirming the order of the Appellate Assistant Commissioner of Income Tax holding that deductions under Sections 80K and 80M allowed under Chapter VI-A of the Income Tax Act could not be considered as sums not includible in the total income for Income Tax assessments and, therefore, would not fall for deduction under Rule 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, for computing the capital employed ?"
The answer to the question referred regarding the assessment years 1972-73 to 1975-76 has clearly to be in the affirmative, in favour of the assessee and against the Revenue, keeping in view our judgment in Income Tax Reference No. 70 of 1980 ( Commissioner of Income Tax Vs. Pure Drinks (New Delhi) Pvt. Ltd., ), decided today, that is, December 1, 1988.
The other question too, namely, that pertaining to the assessment years 1974-75 and 1975-76, has to be answered in the affirmative, in favour of the assessee against the Revenue as the point raised therein is covered by the decisions in Commissioner of Income Tax, Tamil Nadu-IV, Madras Vs. Sundaram Industries (P) Ltd., and COMMISSIONER OF Income Tax Vs. TRAVANCORE ELECTRO CHEMICAL INDUSTRIES LTD. (VICE VERSA)., .
This reference is disposed of accordingly. There will be no order as to costs.