ORIENTAL FIRE AND GENERAL INSURANCE COMPANY LTD. vs COMMISSIONER OF — 1985 PTD 847

Citation: 1985 PTD 847

Court: Bombay High Court

Year: 1962

Decision Date: 1962-06-14

Parties: ORIENTAL FIRE AND GENERAL INSURANCE COMPANY LTD. vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY IV , .

Headnotes

Case cited as 1985 PTD 847

Judgment Text

Court Name: Bombay High Court Judge(s): Kanta, M. N. Chandurkar Title:ORIENTAL FIRE AND GENERAL INSURANCE COMPANY LTD. vs COMMISSIONER OF INCOME-TAX, BOMBAY CITY IV , . Case No.: Income-tax Reference No, 164 of 1973 Date of Judgment:1962-06-14 Reported As: 1985 PTD 847 Result: Reference answered accordingly Judgment ORDER ' CHANDURKAR, J.-In this reference at the instance of the assessee, the following two questions have been referred to this Court under section 256 (1) of the Income-tax Act, 1961 : "(1) Whether on the facts and in the circumstances of the case and on a proper construction of the First Schedule read with section 44 of the Income-tax Act, 1961, the assessee could claim that a sum of Rs, 21,26,932 representing the appreciation in value of some of its foreign assets consequent on the devaluation of the rupee was not assessable to income-tax. (2) If the assessee could so claim, whether this amount of Rs, 21,26,932 was on the facts and in the circumstances of the case liable to tax as income-tax under the Income-tax Act, 1961 ?" 2. The assessee-Company, The Oriental Fire and General Insurance Company Limited. Bombay, carries on business of general insurance. The relevant asssssment year is 1967-68 for which the previous year was the calendar year 1966. In the profit and loss account for 1966, an entry with regard to Rs, 21,26,932 was as follows : "Profit on Exchange (net) see note 3........ Rs, 21,26,932" ' Note 3 referred to in the entry reads as follows :…

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