COMMISSIONER OF INCOME TAX Vs. AYYAPPAN TEXTILES LIMITED

JUDGEMENT

(1.) THE Tribunal has referred to this court the following questions of law :

(2.) THE Tribunal has disclosed no information on the facts except that it has mentioned that the Commissioner of Income-tax (Appeals) has held that the proposed dividend, payable out of the reserve, need not be deducted in computing the capital, which, according to it, was in terms of the view of this court in the case of Madras Motor and General Insurance Co. Ltd. v. CIT [FB] for the assessment year 1974-75 and for 1975-76, on the first question, the decision of the Commissioner of Income-tax (Appeals) that the provision for gratuity should be regarded as a reserve was in terms of the judgment of the Delhi High Court in the case of CIT v. Orissa. Cement Ltd. [1980] 124 ITR 251. On the second question also, the Tribunal's discussion is only to the following effect