(1) THESE appeals arise out of the judgment of the Bombay High court dated 30/7/1976 in I.T. Reference No. 152 of 1975 which related to the assessment years 1964-65, 1965-1966 and 1966-67. The following two questions were referred to the High court:

1 Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that the sums of Rs. 98,730.00 for the assessment year 1964-65, Rs. 1,10,000.00 for the assessment year 1965- 66 and Rs. 81,000.00 for the assessment year 1966-67, representing provisions for gratuity were includible in computing the capital of the assessee company under Rule I of Schedule II of Companies (Profits) Surtax Act, 1964 for the purpose of Surtax?

2 Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that the sums of Rs. 3,20,000.00 for the assessment year 1964-65, Rs. 3,48,943.00 for the assessment year 1965- 66, and Rs. 4,62,609.00 for the assessment year 1966-67, representing dividend reserves were includible in the computation of the capital of the assessee company under Rule I of Schedule II of the Companies (Profits) Surtax Act, 1964 for the purpose of surtax?

(2)