https://www.taxtmi.com/caselaws?id=55752 For section 2(22) purposes, 'accumulated profits' must be assessed in the commercial accounting sense and exclude capital profits such as sanctioned amalgamation surpluses or book capital reserves unless chargeable as capital gains or distributable under the company constitution; consequently the amounts in issue did not constitute accumulated profits and no deemed dividend arises. Separately, reduction of share capital effects extinguishment of shareholders' rights and can constitute a 'transfer' for capital gains; because the AO did not examine capital gains after rejecting accumulated profits, the capital-gains question is remitted to the AO for fresh adjudication. en-us Tue, 20 Mar 2001 00:00:00 +0530 Mon, 29 Nov 2010 17:58:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55752 For section 2(22) purposes, 'accumulated profits' must be assessed in the commercial accounting sense and exclude capital profits such as sanctioned amalgamation surpluses or book capital reserves unless chargeable as capital gains or distributable under the company constitution; consequently the amounts in issue did not constitute accumulated profits and no deemed dividend arises. Separately, reduction of share capital effects extinguishment of shareholders' rights and can constitute a 'transfer' for capital gains; because the AO did not examine capital gains after rejecting accumulated profits, the capital-gains question is remitted to the AO for fresh adjudication. Case-Laws Income Tax Tue, 20 Mar 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55752