https://www.taxtmi.com/caselaws?id=49285 Premium realised on the issue of shares may be included in capital computation where shares are issued against assets and the excess over par value is not a mere revaluation entry but retained share premium. On that reasoning, an amount described as "Capital paid in Surplus" was treated as premium, or alternatively as a reserve, and the statutory exclusion for book assets created by revaluation did not apply. Accumulated profits carried in an "earned surplus" account can also qualify as reserves when they are specifically appropriated, retained year after year, and used as a separate business fund, even if they do not arise from taxed profits. The capital base was therefore computed by including both sums. en-us Tue, 26 Oct 1965 00:00:00 +0530 Tue, 19 Aug 2014 09:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49285 Premium realised on the issue of shares may be included in capital computation where shares are issued against assets and the excess over par value is not a mere revaluation entry but retained share premium. On that reasoning, an amount described as "Capital paid in Surplus" was treated as premium, or alternatively as a reserve, and the statutory exclusion for book assets created by revaluation did not apply. Accumulated profits carried in an "earned surplus" account can also qualify as reserves when they are specifically appropriated, retained year after year, and used as a separate business fund, even if they do not arise from taxed profits. The capital base was therefore computed by including both sums. Case-Laws Income Tax Tue, 26 Oct 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49285