https://www.taxtmi.com/caselaws?id=181462 Bonus debentures issued out of capitalised accumulated profits, in place of a distribution of those profits, were treated as not giving rise to income, profits or gains in the shareholders' hands under Section 4 of the Indian Income Tax Act, 1922. The reasoning applied the principle that a valid corporate capitalisation of accumulated profits through resolutions and instruments does not create taxable income for shareholders merely because they control the company or had a personal motive. The shareholder's private purpose was held irrelevant where the company had in fact capitalised the profits. en-us Wed, 20 May 1936 00:00:00 +0530 Mon, 18 Apr 2016 12:32:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=181462 Bonus debentures issued out of capitalised accumulated profits, in place of a distribution of those profits, were treated as not giving rise to income, profits or gains in the shareholders' hands under Section 4 of the Indian Income Tax Act, 1922. The reasoning applied the principle that a valid corporate capitalisation of accumulated profits through resolutions and instruments does not create taxable income for shareholders merely because they control the company or had a personal motive. The shareholder's private purpose was held irrelevant where the company had in fact capitalised the profits. Case-Laws Income Tax Wed, 20 May 1936 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=181462