https://www.taxtmi.com/caselaws?id=290230 Accumulated profits capitalised and issued as fully paid bonus shares were treated as an accretion to shareholders' capital, not as income, profits or gains chargeable under the Income-tax Act, 1922. The Court distinguished the Western Australian authority as turning on special statutory wording and followed the principle in Blott that such a transaction converts profits into capital rather than distributing income to shareholders. On that basis, bonus shares issued from capitalised reserves and profits were not liable to supertax. en-us Mon, 10 Mar 1924 00:00:00 +0530 Tue, 15 Sep 2020 12:00:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290230 Accumulated profits capitalised and issued as fully paid bonus shares were treated as an accretion to shareholders' capital, not as income, profits or gains chargeable under the Income-tax Act, 1922. The Court distinguished the Western Australian authority as turning on special statutory wording and followed the principle in Blott that such a transaction converts profits into capital rather than distributing income to shareholders. On that basis, bonus shares issued from capitalised reserves and profits were not liable to supertax. Case-Laws Income Tax Mon, 10 Mar 1924 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290230