https://www.taxtmi.com/caselaws?id=33643 Rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 applies only where the corresponding income exclusion under rule 1 of the First Schedule is attracted. Because the assessee had no dividend income falling within rule 1(viii), there was no basis to reduce the capital base by excluding the cost of shares from the capital computation. On that footing, the assessment was not erroneous or prejudicial to the interests of the Revenue on this point, and the revisional direction under section 16 to recompute capital was unsustainable. The question was answered in favour of the assessee and against the Revenue. en-us Tue, 04 Mar 2008 00:00:00 +0530 Fri, 16 Sep 2011 16:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33643 Rule 2 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 applies only where the corresponding income exclusion under rule 1 of the First Schedule is attracted. Because the assessee had no dividend income falling within rule 1(viii), there was no basis to reduce the capital base by excluding the cost of shares from the capital computation. On that footing, the assessment was not erroneous or prejudicial to the interests of the Revenue on this point, and the revisional direction under section 16 to recompute capital was unsustainable. The question was answered in favour of the assessee and against the Revenue. Case-Laws Indian Laws Tue, 04 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33643