https://www.taxtmi.com/caselaws?id=12323 For computing capital under rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the cost of shares is to be excluded where the shares fall within the category of assets whose income is of the kind excluded under rule 1 of the First Schedule. Actual receipt of dividend or other excluded income during the accounting period is not a for exclusion; the statutory inquiry is whether the asset is capable of yielding the relevant excluded income. Applying a literal construction of the computation provisions, the court held that the cost of the shares was rightly excluded from the assessee's capital and answered the issue in favour of the Revenue. en-us Tue, 06 Aug 2002 00:00:00 +0530 Sun, 21 Feb 2010 16:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12323 For computing capital under rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, the cost of shares is to be excluded where the shares fall within the category of assets whose income is of the kind excluded under rule 1 of the First Schedule. Actual receipt of dividend or other excluded income during the accounting period is not a for exclusion; the statutory inquiry is whether the asset is capable of yielding the relevant excluded income. Applying a literal construction of the computation provisions, the court held that the cost of the shares was rightly excluded from the assessee's capital and answered the issue in favour of the Revenue. Case-Laws Income Tax Tue, 06 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12323