COMMISSIONER OF INCOME TAX Vs. ANDHRA BANK LIMITED

JUDGEMENT

(1.) This is a consolidated reference under the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as "the Act"), for the assessment years 1974-75, 1975-76 and 1977-78. The reference is at the instance of the Commissioner of Income-tax and the Tribunal referred as many as six questions. Out of these six questions, three questions are common for the assessment years 1974-75, 1975-76 and 1977-78. Two questions are common for the assessment years 1975-76 and 1977-78 and one question pertains to the assessment year 1975-76. We deal with these questions in that order.

(2.) Taking up the three questions which are common for the assessment years 1974-75, 1975-76 and 1977-78, learned standing counsel for the Revenue fairly represented that all these three questions are covered by a decision of this court in Referred Case No. 18 of 1981 dated November 7, 1984 (See [1990] 186 ITR 190 (supra)). The first question, it is said, is covered against the Revenue (sic); the second question, it appears, is covered against the assessee (sic); and the third question, it is said, is covered against the Revenue. Having regard to this representation, we answer questions Nos. 1 and 3 in favour of the assessee and against the Revenue (sic) and question No. 2 in favour of the Revenue and against the assessee (sic).

(3.) We then take up the two questions for the assessment years 1975-76 and 1977-78. The questions run as follows :