https://www.taxtmi.com/caselaws?id=276758 For computation of capital under Schedule II of the Business Profits Tax Act, 1947, a surplus credited as capital paid in surplus can be treated as share premium where shares were issued for non-cash consideration and the value received exceeded face value. The same surplus may also qualify as a reserve under rule 2, because the term reserve bears its ordinary meaning and is not confined to amounts built out of taxed profits, unless specifically excluded by the income-tax computation rules. Amounts shown as earned surplus may likewise be reserves where profits were retained in the business and used for expansion, even if not formally labelled as reserves. en-us Mon, 29 Jan 1962 00:00:00 +0530 Fri, 16 Nov 2018 17:55:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276758 For computation of capital under Schedule II of the Business Profits Tax Act, 1947, a surplus credited as capital paid in surplus can be treated as share premium where shares were issued for non-cash consideration and the value received exceeded face value. The same surplus may also qualify as a reserve under rule 2, because the term reserve bears its ordinary meaning and is not confined to amounts built out of taxed profits, unless specifically excluded by the income-tax computation rules. Amounts shown as earned surplus may likewise be reserves where profits were retained in the business and used for expansion, even if not formally labelled as reserves. Case-Laws Income Tax Mon, 29 Jan 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276758