https://www.taxtmi.com/caselaws?id=29025 Capitalisation of reserves by issue of bonus shares did not amount to a fresh increase in capital for rule 3 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, because no new funds entered the company and the transaction was only an internal reclassification; that issue was decided for the Revenue. Provision for proposed dividends was not a reserve for capital computation under the Surtax Act, following binding precedent, and that issue also went to the Revenue. By contrast, deductions or rebates under Chapter VI-A of the Income-tax Act, 1961 were treated as part of total income for the rule 4 computation, so capital was not required to be reduced on the Revenue's contention; that issue was decided for the assessee. en-us Wed, 21 Oct 1981 00:00:00 +0530 Wed, 10 Mar 2010 12:44:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29025 Capitalisation of reserves by issue of bonus shares did not amount to a fresh increase in capital for rule 3 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, because no new funds entered the company and the transaction was only an internal reclassification; that issue was decided for the Revenue. Provision for proposed dividends was not a reserve for capital computation under the Surtax Act, following binding precedent, and that issue also went to the Revenue. By contrast, deductions or rebates under Chapter VI-A of the Income-tax Act, 1961 were treated as part of total income for the rule 4 computation, so capital was not required to be reduced on the Revenue's contention; that issue was decided for the assessee. Case-Laws Income Tax Wed, 21 Oct 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29025