RANE (MADRAS) LTD Vs. INSPECTING ASSISTANT COMMISSIONER

JUDGEMENT

(1.) These appeals are directed against the orders of the CIT (Appeals) relating to the computation of the capital base for the purpose of surtax.

(2.) The assessee is a company. For the assessment year 1982-83, corresponding to the previous year ended 31-3-1982, the Assessing Officer made a reducting of a sum of Rs. 7,871 under Rule 1 of the Second Schedule in computing the capital base. No reasons were given in his order for the reducting. For the assessment year 1983-84, corresponding to the previous year ended 31-3-1983, a similar reduction of Rs. 7,871 was made. However, in the note at the bottom of the assessment order it was mentioned.

(3.) On appeal the CIT (Appeals) followed the decision of the Bombay High Court, cited above, and confirmed the reduction in the capital base.