Srinivasa Iyengar, J.—These appeals are against the common judgment in W. Ps. Nos. 3447, 3448 and 3578 of 1973 and 1121, 2551 and 2552 of 1974, dated 13th September, 1974, by which the notices issued under sections 8/16 of the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as "the Act") by the appellants, were quashed. The facts and circumstances in which the notices had been issued being the same in all the cases, it is sufficient to state the facts relating to W. P. No. 3578 of 1973.

2. M/s. Stumpp. Schuele & Somappa Private Ltd. is a company registered under the Companies Act, 1956, and an assessee under the Act. For the assessment year 1971-72 (previous year ending December 31, 1970), assessment was made under the Income Tax Act, 1961, after the enquiry of December 31, 1971, on a total income of Rs. 26,16,490. Based on this assessment, surtax was computed on December 13, 1971. The Income Tax Officer modified the Income Tax assessment by an order dated September 12, 1972, the total income being computed at Rs. 26,07,560. Consequent on this, the surtax assessment was also modified on September 25, 1972, which resulted in a small refund of Rs. 892 in the surt