RAM REFRIGERATION INDIA LIMITED Vs. COMMISSIONER OF SURTAX

JUDGEMENT

(1.) THIS reference under S. 18 of the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as 'the said Act'), r/w S. 256(1) of the IT Act 1961 (hereinafter referred to as 'IT Act'), has been made by the Income tax Appellate Tribunal, Delhi Bench 'B', New Delhi (hereinafter referred to as 'the Tribunal'), to this Court for its opinion on the following question :

(2.) THE factual matrix leading to the aforementioned dispute is as follows : The assessee held shares in certain companies worth Rs 4,55,000. During the asst. year 1982 83, the assessee did not derive any dividend income therefrom. The cost of the said shares was excluded by the AO as also the appellate authority from the capital of the assessee company for calculating statutory deduction. Thereafter, the assessee company preferred an appeal before the Tribunal wherein it was found that the assessee had not led any evidence, which might have been relevant for determining the question. It further observed :

(3.) AS noticed by the learned Tribunal, similar question came up for consideration before the Karnataka High Court in CIT vs. United Breweries Ltd. (1978) 114 ITR 901 (Kar), wherein Venkataramaiah, J. (as his Lordship then was) held :