https://www.taxtmi.com/caselaws?id=26557 The High Court ruled in favor of the Revenue, holding that issuing bonus shares from the development rebate reserve amounts to distribution of profits, contravening statutory requirements. The court emphasized that although bonus shares issuance is not equivalent to dividend distribution, it still depletes reserves and benefits shareholders, constituting profit distribution. Consequently, the court upheld the Income-tax Officer's decision to withdraw the development rebate, stating that the issuance of bonus shares from the reserve violates the conditions for claiming the rebate. en-us Thu, 12 Jun 1986 00:00:00 +0530 Sat, 06 Feb 2010 10:25:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26557 The High Court ruled in favor of the Revenue, holding that issuing bonus shares from the development rebate reserve amounts to distribution of profits, contravening statutory requirements. The court emphasized that although bonus shares issuance is not equivalent to dividend distribution, it still depletes reserves and benefits shareholders, constituting profit distribution. Consequently, the court upheld the Income-tax Officer's decision to withdraw the development rebate, stating that the issuance of bonus shares from the reserve violates the conditions for claiming the rebate. Case-Laws Income Tax Thu, 12 Jun 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26557