emphasis supplied By a detailed judgment dated 27.7.1992 the High Court took the view that on the facts and circumstances of the present case, sums of money set apart by the assessee as reserves are really provisions and number reserves and so, such sums are number entitied to the relief granted by the Appellate Tribunal.
7,00,000/ 1972 73 Rs.
The assessee has filed special leave petitions in this Court directly against the aforesaid order of the Appellate Tribunal.
On motion by the Revenue the Appellate Tribunal referred the following questions of law for the decision of the High Court of Punjab and Haryana, which were numbered as Income Tax Reference Nos.
The appellant assessee set apart amounts as reserve for bad and doubtful debts in all the years.
In appeal, CIT allowed the claims.
All the 13 appeals involve companyslderation of the same question between the same parties.
27551 of 1995, relating to the same assessee and involving companysideration of the same question, relates to the assessment year 1985 86.
The Income Tax Officer rejected the claim.
It is, thereafter the assessee moved this Court by special leave petition Nos.
2392 95 of 1993 are the main cases.
235 to 238 of 1980 Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law ln holding that the amounts provided by the assessee for bad and doubtful debts in the balance sheets of the relevant previous years qualified as reserves for the Purpose of clause xi b of Rule 1 of the First Schedule to the Companies Profits Sur tax Act, 1964 and companysequently allowing yearwise deduction as under 1971 72 Rs.
2392 95 of 1993 and obtained special leave in the four cases.
The judgment of the High Court is reported as Commissioner of Income Tax vs. State Bank of Patiala 203 ITR 150 .
So, they were heard together and are disposed of by this companymon judgment.
13,78,000/ 1973 74 Rs.
These are all companynected cases.
The attempt to get the matter referred to the High Court was unsuccassful and so the assessee filed the special leave petition in this Court against tne order of the Appelate Tribunal.
22,11,000/ 1975 76 Rs.
In the meanwhile, the decision of the High Court for the previous four years, i.e., 1971 72, 1972 73, 1973 74 and 1975 76 had been rendered and so the Tribunal, following the decision of the High Court, held against the assessee.
The Income Tax Appellate Tribunal, by its detailed order dated 23.1.1980, upheld the plea of the assessee and held that the amounts set apart as reserves are entitled for appropriate relief under Rule 1 xi b of the First Schedule and Rule 1 iii of the Second Schedule of the Act.
27543 5Q of 1995 relate to the same assessee and eight assessment years are involved therein 1979 80 to 1987 88 escept 1985 86.
15,98,000/ ii Whether on the facts and in the circumstances of the case, the Appellate Tribanal was right in law in holding that the amounts of Rs.15,53,576/ , Rs.27,21,641/ , Rs.29,91,641/ and Rs.47,16,641, provided for bad and doubtful debts as at the beginning of the relevant accounting year respectively for the assessment years 1971 72, 1972 73, 1973 74 and 1975 76 qualified as a reserve for inclusion in the capital of the assessee under Second Schedule ot the companypanies Profits sur tax, Act,1964.
The Appellate Tribunal finally decided against the assessee following the earlier decision of the High Court reported in 203 ITR 150.
We heard companynsel for the appellant assessee, Mr. A. Subba Rao, and companynsel for the respondentRevenue, Mr. B.S. Ahuja.
In appeal, the Income Tax Appellate Tribunal allowed the plea of the assessee.
For those years, identical claim put forward by the appellant assessee was rejected by the Income Tax Officer.
The plea of the assessee to refer the matter either to the appropriate High Court or to this Court was disallowed.
Special leave petitions C Nos.
A claim was laid that such sums qualified as reserves for the purpose of Rule 1 xi b of the First Schedule and Rule 1 Of the Second Schedule of the Act and such sums, representing reserves, should be included in the capital of the appellant for appropriate relief.
They relate to four assessment years 1971 72, 1972 73, 1973 74 and 1975 76.
The Civil Appeals filed from Special leave petitions C Nos.
Special leave petition C No.
The appellant ln the appeals is The State Bank of Patiala and the respondent is the Commissioner of Income Tax, Patiala.
Paripoornan,J. Leave granted in all the special leave petitions.
