https://www.taxtmi.com/caselaws?id=184189 Share premiums forgone when unissued shares are allotted at par to employees are capital rather than trading receipts and do not constitute an expense wholly and exclusively incurred for the trade. The company makes no cash disbursement, transfers no existing asset, and suffers no diminution of assets because the premium was never received. Authorities concerning annual value or tied-house arrangements do not establish that every forgone profit is deductible. Although an actual payment, discharge of a trading liability, or transfer of an existing asset as remuneration may be deductible, employee taxation on the value received does not convert an unrealised share premium into a Schedule D trading expense. The claimed deduction is therefore disallowed. en-us Wed, 08 May 1940 00:00:00 +0530 Fri, 01 Jul 2016 17:18:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184189 Share premiums forgone when unissued shares are allotted at par to employees are capital rather than trading receipts and do not constitute an expense wholly and exclusively incurred for the trade. The company makes no cash disbursement, transfers no existing asset, and suffers no diminution of assets because the premium was never received. Authorities concerning annual value or tied-house arrangements do not establish that every forgone profit is deductible. Although an actual payment, discharge of a trading liability, or transfer of an existing asset as remuneration may be deductible, employee taxation on the value received does not convert an unrealised share premium into a Schedule D trading expense. The claimed deduction is therefore disallowed. Case-Laws Income Tax Wed, 08 May 1940 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184189