COMMISSIONER OF SURTAX Vs. ORIENTAL BANK OF COMMERCE

JUDGEMENT

(1.) HEARD . The following question has been referred by the Tribunal, Delhi Bench, for opinion of this Court under S. 256(1) of the IT Act, 1961, r/w S. 9 of the Companies (Profits) Surtax Act, 1964 ('the Act') :

(2.) WE find that gratuity reserve and reserve for bad and doubtful debts have not been worked out on actuarial basis. It is to be noted that so far as the gratuity reserve is concerned, it is to be worked out on actuarial basis. For the purpose of bad and doubtful debts actual quantification would be necessary. That question does not appear to have been considered by the Tribunal. That being the position, we remit the question back for fresh hearing in view of what has been stated by the apex Court in CIT vs. Jyoti Ltd. (1996) 133 CTR (SC) 57 : (1996) 219 ITR 388 (SC).