Judgement

SHAH, J.: At the instance of the Commissioner of Income-tax (Central), Calcutta, the Income-tax Appellate Tribunal referred the following questions for the opinion of the High Court of Calcutta under S. 19 of the Business Profits Tax Act, 21 of 1947:

(1) Whether on the facts found the Tribunal was right in holding that the sum of s 117,000,000 appearing in the Balance Sheet of the assessee Company under the head Capital paid in Surplus and constituting the excess of the book value of the assets over the fact value of the shares represented premium realised from the issue of the shares as contemplated by R. 3 of Sch. II of the Business Profits Tax Act, 1947?

(2) Whether on facts and in the circumstances of the case the Tribunal was right in holding that the fact that the amount in question had been built up out of capital and not out of taxed profits would not prevent it from being reserve as contemplated by sub-r. (1) of R. of the Schedule II of the Business Profits Tax Act?

(3) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of S 29,000,000 odd. S 43,000,000 odd. S 56,000,000 odd. and S 73,000,000 odd. for the re