Judgment

TULZAPURKAR, J.:- In these Civil Appeals and Tax Reference Cases certain common questions of law arise for our determination and hence all these are disposed of by this common judgment. The common questions raised are whether amounts retained or appropriated or set apart by the concerned assessee company by way of making provision (a) for taxation, (b) for retirement gratuity and (c) for proposed dividends from out of profits and other surpluses could be considered as "other reserves" within the meaning of Rule 1 of the Second Schedule to the Super Profits Tax Act, 1963 (or Rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964) for inclusion in capital computation of the Company for the purpose of levying super profit tax? The first three matters concerning Vazir Sultan Tobacco Co. Ltd., Hyderabad, Ballarpur Industries Ltd., and M/s. Bengal Paper Mills Co. Ltd., Calcutta arise under the Super Profits Tax Act, 1963 while the Tax Reference Cases concerning M/s. Echjay Industries Pvt. Ltd., and Hyco Products Pvt. Ltd., Bombay arise under the Companies (Profits) Surtax Act, 1964.

2. Since Civil Appeal No. 860 of 1973 (Vazir Sultan Tobacco Companys case) is co