Commissioner of Surtax Vs. Gedore Tools (India) (P) Ltd.

in the delhi high court arijit pasayat, c.j. & d.k. jain, j. - arijit pasayat, c.j.heard.all the four reference applications involve common question of law and are disposed of by this common order.the dispute relates to assessment years 1969-70 to 1972-73. at the instance of the revenue, for the first two years, i.e., 1,969-70 and 1970-71, following question has been referred for opinion of this court under section 256(1) of the income tax act, 1961 (hereinafter referred to as the act), the tribunal, delhi bench a:'whether, on the facts and in the circumstances of the case, the tribunal was correct in holding that the reopening of the assessment under section 8(b) of the companies (profits) surtax act, 1964 was merely on the basis of change of opinion on the part of the surtax officer and that the surtax officer had no information in his possession in consequence of which he could have reasons to believe that chargeable profits had been the subject of excessive relief under the said act?'whereas for the assessment years 1969-70 to 1972-73, a common question has been referred which reads as follows :'whether, on the facts and in the circumstances of the case, the tribunal was justified in holding that the capital employed for earning the profits entitled to deduction under section 80-i and 80j of the income tax act, 1961 should not be excluded from the computation of capital under the second schedule to the companies (profits) surtax act, 1964?'2. we need not deal with the factual aspects in detail in view of decision of the apex court in ito v. stumpp schuele and somappa (p) ltd. : [1991]187itr108(sc) . thereforee, the common question for the four assessment years is answered in the affirmative, in favor of the assessed and against the revenue. in view of this, it is unnecessary to deal with the first question which is more of academic interest.all the four applications are disposed of.