1990 (8) TMI 69

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..... y as five questions referred to this court by the Tribunal as questions of law. The questions are : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the dividend paid on cumulative preference shares of Rs. 9,67,065 is to be included while computing the capital of the assessee for the purpose of surtax assessment ? 2. Whether, on the facts and .....

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..... were includible in computing the capital of the assessee under rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 ? 5. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that a sum of Rs. 11,71,505 representing the increase in liability on account of devaluation of the rupee should be included in computing the capital of .....

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..... ounsel are agreed that it is covered by our court's judgment in the assessee's own case reported in CIT v. National Rayon Corporation Ltd. [1986] 160 ITR 716. Accordingly, we have to hold that the reserve to the extent it represents debenture redemption reserve is not to be treated as a reserve and the reserve to the extent it represents gratuity reserve will be treated as reserve only in so far a .....

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