https://www.taxtmi.com/caselaws?id=20404 An interest-free amount advanced by a shareholder remains a loan until shares are actually allotted and the sum is appropriated towards share capital; it does not become paid-up share capital merely because it is intended for future adjustment or shown as capital suspense. For surtax computation, the same amount is not a reserve while it continues to be a liability and has not been set apart for a definite capital purpose. It becomes part of capital only on actual allotment and adjustment against shares. On that basis, the amount was neither paid-up share capital nor reserve on the relevant date. en-us Wed, 07 Apr 1993 00:00:00 +0530 Fri, 13 Nov 2009 16:57:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20404 An interest-free amount advanced by a shareholder remains a loan until shares are actually allotted and the sum is appropriated towards share capital; it does not become paid-up share capital merely because it is intended for future adjustment or shown as capital suspense. For surtax computation, the same amount is not a reserve while it continues to be a liability and has not been set apart for a definite capital purpose. It becomes part of capital only on actual allotment and adjustment against shares. On that basis, the amount was neither paid-up share capital nor reserve on the relevant date. Case-Laws Income Tax Wed, 07 Apr 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20404