https://www.taxtmi.com/caselaws?id=38388 Rule 2 of the Second Schedule to the Super Profits Tax Act, 1963 applies where a company's paid-up share capital is actually increased during the previous year. The controlling test is the increase in paid-up share capital itself, not whether the increase came from fresh cash or from capitalisation of reserves. On that basis, bonus shares issued out of reserves were treated as an increase in paid-up share capital, and the proportional increase under rule 2 was available. en-us Tue, 05 Jul 1977 00:00:00 +0530 Tue, 06 Apr 2010 10:03:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38388 Rule 2 of the Second Schedule to the Super Profits Tax Act, 1963 applies where a company's paid-up share capital is actually increased during the previous year. The controlling test is the increase in paid-up share capital itself, not whether the increase came from fresh cash or from capitalisation of reserves. On that basis, bonus shares issued out of reserves were treated as an increase in paid-up share capital, and the proportional increase under rule 2 was available. Case-Laws Income Tax Tue, 05 Jul 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38388