SABYASACHI MUKHARJI, J.

( 1 ) IN this reference under Section 256 (1) of the I. T. Act, 1961, read with Section 19 of the Super Profits Tax Act, 1963, the following question has been referred to us :"whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Debenture Sinking Fund of Rs. 2,32,8,123, Replacement and Contingencies Fund of Rs. 6,97,90,155 and Contingency Reserve Fund of Rs. 69,92,624 constituted reserves for the purpose of computing the capital of the assessee-company under the Second Schedule to the Super Profits Tax Act, 1963 ?"

( 2 ) THE assessee is the Calcutta Electric Supply Corporation Ltd. , and the relevant assessment year is 1963-64. The assessee-company claimed as part of its Capital Debenture Sinking Fund Rs. 2,32,08,123, Reserve for Plant Expansion Rs. 6,97,90,155 and Contingency Reserve Fund of Rs. 69,92,624 to be part of its capital. The ITO rejected the assessee's claim on the ground that the funds were not allowable for the capital computation to arrive at the standard deduction for a determination of the tax liability under the S. P. T. Act, 1963. Being aggrieved by this order, the assessee went up in appe

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