https://www.taxtmi.com/caselaws?id=5624 The Supreme Court held that issuing bonus shares from the development rebate reserve did not constitute a distribution of profits under the Income-tax Act, 1961. The Court rejected the view that bonus shares equate to profit distribution, emphasizing that no actual disbursement occurs as the reserve fund remains within the company. Therefore, the Income-tax Officer's withdrawal of the development rebate was deemed unjustified. The Court allowed the appeals, setting aside the High Court's judgment, with no order as to costs. en-us Wed, 19 Nov 1997 00:00:00 +0530 Sat, 19 Jul 2014 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5624 The Supreme Court held that issuing bonus shares from the development rebate reserve did not constitute a distribution of profits under the Income-tax Act, 1961. The Court rejected the view that bonus shares equate to profit distribution, emphasizing that no actual disbursement occurs as the reserve fund remains within the company. Therefore, the Income-tax Officer's withdrawal of the development rebate was deemed unjustified. The Court allowed the appeals, setting aside the High Court's judgment, with no order as to costs. Case-Laws Income Tax Wed, 19 Nov 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5624