https://www.taxtmi.com/caselaws?id=19191 Rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 was construed as operating only where income from the relevant assets is excluded under rule 1 of the First Schedule, and the reduction from capital is limited to the extent contemplated by the schedule. Applying that approach, the cost of shares was not required to be excluded from capital because the assessee already had sufficient surplus and reserves, and the share cost did not exceed those amounts. The court relied on its earlier interpretation and found support in a Bombay High Court decision, with the issue answered in favour of the assessee. en-us Wed, 27 Apr 1994 00:00:00 +0530 Wed, 04 Nov 2009 15:33:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19191 Rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 was construed as operating only where income from the relevant assets is excluded under rule 1 of the First Schedule, and the reduction from capital is limited to the extent contemplated by the schedule. Applying that approach, the cost of shares was not required to be excluded from capital because the assessee already had sufficient surplus and reserves, and the share cost did not exceed those amounts. The court relied on its earlier interpretation and found support in a Bombay High Court decision, with the issue answered in favour of the assessee. Case-Laws Income Tax Wed, 27 Apr 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19191