COMMISSIONER OF INCOME TAX Vs. VOLTAS LIMITED

JUDGEMENT

(1.) SINCE , inter alia, a common issue is involved in these references, they are heard together and are being disposed of by a common judgment for the sake of convenience.

(2.) THE assessees are companies to which the provisions of the Companies (Profits) Surtax Act, 1964 ('the Surtax Act'), are applicable. The assessment years in the case of Messrs Voltas Ltd. are 1974 -75 and 1975 -76 while, in the case of Messrs Standard Mills Co. Ltd., it is 1975 -76.

(3.) AT the outset, Shri Mistry, learned counsel for the assessee, and Dr. Balasubramaniam, learned counsel for the Revenue, stated that, in view of the decisions of the Supreme Court in the cases in ITO (Second) v. Stumpp, Schuele and Somappa P. Ltd. : [1991]187ITR108(SC) and Vazir Sultan tobacco Co. Ltd. v. CIT : [1981]132ITR559(SC) , the answer to both questions Nos. 1 and 2 should be in the affirmative and in favour of the assessee. These questions are, therefore, answered accordingly.