JUDGMENT
T.D. Sugla, J.
1. The question of law referred to us in this reference at the instance of the Department reads thus :
“Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that in the computation of the capital of the assessee-company for purposes of surtax under the Companies (Profits) Surtax Act, 1964, no reduction on account of the relief obtained by the assessee in its income-tax assessments under section 80J of the Income-tax Act, 1961, was to be made and that rule 4 of the Second Schedule to the Companies (Profit) Surtax Act, 1964, was not to be applied for making any proportionate reduction on such account ?”
2. Counsel are agreed that in view of this court’s decision in the case of CIT v. Century Spinning and Manufacturing Co. Ltd. [1978] 111 ITR 6, the question must be answered in the affirmative and in favour of the assessee. Accordingly, the question is so answered. No order as to costs.