{"id":258758,"date":"1984-05-09T00:00:00","date_gmt":"1984-05-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-punjab-national-bank-ltd-on-9-may-1984"},"modified":"2016-06-14T03:06:59","modified_gmt":"2016-06-13T21:36:59","slug":"commissioner-of-income-tax-vs-punjab-national-bank-ltd-on-9-may-1984","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-punjab-national-bank-ltd-on-9-may-1984","title":{"rendered":"Commissioner Of Income-Tax vs Punjab National Bank Ltd. on 9 May, 1984"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Commissioner Of Income-Tax vs Punjab National Bank Ltd. on 9 May, 1984<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1985 156 ITR 676 Delhi<\/div>\n<div class=\"doc_author\">Author: D Kapur<\/div>\n<div class=\"doc_bench\">Bench: D Kapur, D Wadhwa<\/div>\n<p id=\"p_1\">JUDGMENT<\/p>\n<p>D.K. Kapur, J.\n<\/p>\n<p id=\"p_1\">1. At the instance of the Commissioner of Income-tax the following question have been referred to us under <a href=\"\/doc\/1940213\/\" id=\"a_1\">section 256(1)<\/a> of the Income-tax Act, 1961, for the assessment year 1970-71 :\n<\/p>\n<p id=\"p_2\"> &#8220;1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the amount of Rs. 78,00,000 transferred to an account styled as &#8216;contingency reserve&#8217; represented a reserve and was deductible from chargeable profits under the <a href=\"\/doc\/337865\/\" id=\"a_1\">Companies (Profits) Surtax Act<\/a>, 1964 ?\n<\/p>\n<p id=\"p_3\"> 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the amount of Rs. 84,16,116 being the credit balance in an account styled as &#8216;contingency reserve&#8217;should be treated as a reserve as on the first day of the previous year in computing the capital of the company for the purposes of the Companies (Profit) Surtax Act, 1964 ?&#8221;\n<\/p>\n<p id=\"p_4\">2. Similar questions except for the amounts have arisen in past years also. For the assessment year 1963-64, a reference made in respect of the super profits tax assessment of this assessed, the Punjab National Bank Ltd., involved similar questions. It was held that the sums credited in contingency reserve, charity reserve and other similar amounts were &#8220;reserves&#8221; as they did not relate to any real existing liability. Similar situation exists in the present assessment. Following that judgment, we answer the questions referred to us in the affirmative. The amounts transferred to contingency reserve are &#8220;reserves&#8221;. They have to be treated as such for the purpose of the <a href=\"\/doc\/337865\/\" id=\"a_2\">Companies (Profits) Surtax Act<\/a>, 1964. Parties will bear their own costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Commissioner Of Income-Tax vs Punjab National Bank Ltd. on 9 May, 1984 Equivalent citations: 1985 156 ITR 676 Delhi Author: D Kapur Bench: D Kapur, D Wadhwa JUDGMENT D.K. Kapur, J. 1. At the instance of the Commissioner of Income-tax the following question have been referred to us under section 256(1) of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-258758","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Of Income-Tax vs Punjab National Bank Ltd. on 9 May, 1984 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-punjab-national-bank-ltd-on-9-may-1984\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commissioner Of Income-Tax vs Punjab National Bank Ltd. on 9 May, 1984 - Free Judgements of Supreme Court &amp; 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