COMMISSIONER OF INCOME TAX Vs. CENTURY ENKA LTD

JUDGEMENT

(1.) THE Tribunal has referred the following two questions of law to this Court under s. 256(1) of the IT Act, 1961, r/w s. 18 of the Companies (Profits) Surtax Act,1964.

(2.) THE relevant years of assessment are the asst. yrs. 1973-74 and 1974-75, for which the corresponding periods of account are the years ending on 30th Sept., 1972 and 30th Sept., 1973 respectively.

(3.) THE second question is in respect of two items of reserves created by the company. he first one relates to reserve for export obligation and the second one is with regard to "Tax equalisation reserve." So far as these two reserves are concerned, the Tribunal recorded its findings in the following words in the appellate order :