TMI Blog1981 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... order. The assessee in both the matters, who is the respondent, is Asian Paints (India) Pvt. Ltd. In Income-tax Reference No. 97 of 1972, we are concerned with the computation of super profits tax for the assessment year 1963-64. In Income-tax Reference No. 102 of 1972, we are concerned with the computation of surtax for the assessment years 1964-65 and 1965-66. In both the references the question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 102 of 1972, the following question stands referred to us: " Whether, on the facts and in the circumstances of the case, the `gratuity reserve' shown in the balance-sheet of the company in the amount of Rs. 1,70,000 is includible in the computation of capital as on 1st January, 1963, and as on 1st January, 1964, in terms of rule I of the Second Schedule to the Companies (Profits) Surtax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity for the payment of gratuity. if that be so, then following our decision in CIT v. Forbes Forbes Campbell, Co. Ltd. [1977] 107 ITR 38 (Bom), we are required to hold that the sum would constitute a reserve and will be required to be included in the computation of capital on 1st January, 1962, 1st January, 1963, as also on 1st January, 1964. Accordingly, both the questions are answered in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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