https://www.taxtmi.com/caselaws?id=172678 Amounts credited as "Capital paid in Surplus" were treated as premium realised on the issue of shares, because the excess arose from assets received over the par value of shares issued; alternatively, the amount qualified as a reserve under Rule 2(1) since reserves are not confined to sums built only out of taxed profits. Amounts carried forward as "Earned Surplus" were also held to be reserves, because the profits were specifically appropriated in a distinct account maintained for business use in future years. The additions were therefore upheld and the appeals were dismissed. en-us Tue, 26 Oct 1965 00:00:00 +0530 Thu, 27 Aug 2015 14:20:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172678 Amounts credited as "Capital paid in Surplus" were treated as premium realised on the issue of shares, because the excess arose from assets received over the par value of shares issued; alternatively, the amount qualified as a reserve under Rule 2(1) since reserves are not confined to sums built only out of taxed profits. Amounts carried forward as "Earned Surplus" were also held to be reserves, because the profits were specifically appropriated in a distinct account maintained for business use in future years. The additions were therefore upheld and the appeals were dismissed. Case-Laws Indian Laws Tue, 26 Oct 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172678