(Appeals by special leave against the judgment and order, dated July 30, 1976, of the Bombay High Court in Income-tax Reference No.12 of 1976).

Income-tax---

----Company---Surtax---Computation of capital---"Reserves"---General reserves---Actual depreciation being in excess of depreciation provided for-- Difference to be deducted from general reserves---That assessment in which depreciation is allowed is completed after first day of the relevant previous year---Not relevant---Indian Companies (Profits) Surtax Act, 1964, Sched. II, R.1(iii).

From the decision of the Bombay High Court in CIT v. Zenith Steel Pipes Ltd. (1978) 112 ITR 215 to the effect (i) that where the depreciation actually, allowed in the assessment exceeds the depreciation provided in the books of the assessee-company, the amount of excess is to be deducted from the general reserves for the purpose of including the reserves in computing the capital for purposes of surtax and (ii) that the fact that the assessment in which the depreciation actually allowed is determined is completed after the first day of the relevant previous year in relation to which the capital is to be computed were not relevant, appeals were preferred to the Supreme Court and the Supreme Court dismissed the appeals in view of the statement of counsel that the issues were covered against the appellant by one or other of the pronouncements of the Supreme Court.

CIT v. Zenith Steel Pipes Ltd. (197$) 112 ITR 215 affirmed.

Suman J. Khaitan for Appellant.

Ms. A. Subhashini for Respondent.

JUDGMENT

We have heard Sri Suman J. Khaitan, learned counsel for the appellant, and Sri Ahuja, learned counsel for the 'respondent, in CA. Nos.1020-21 of 1977. Learned counsel state that the various issues arising in these appeals are covered against the appellant by one or the other of the earlier pronouncements of this Court. This submission is placed on record and these appeals are dismissed. There will be no order as to costs.

M.B.A./2299/TAppeals dismissed.