https://www.taxtmi.com/caselaws?id=60874 For surtax computation under the Companies (Profit) Surtax Act, 1964, bonus shares issued by capitalising general reserves did not create a net increase in capital under rule 3 because the rise in share capital was matched by an equal reduction in reserves. The computation had to follow the actual book entries and the timing of the transactions, so later transfers from the profit and loss account could not be treated as the source of the bonus issue. The assessee's authorities under a different statutory scheme were inapplicable. The Tribunal therefore held that the proportionate amount was not includible as increased capital and rejected the alternative plea. en-us Thu, 25 Feb 1993 00:00:00 +0530 Sat, 08 Jan 2011 13:58:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60874 For surtax computation under the Companies (Profit) Surtax Act, 1964, bonus shares issued by capitalising general reserves did not create a net increase in capital under rule 3 because the rise in share capital was matched by an equal reduction in reserves. The computation had to follow the actual book entries and the timing of the transactions, so later transfers from the profit and loss account could not be treated as the source of the bonus issue. The assessee's authorities under a different statutory scheme were inapplicable. The Tribunal therefore held that the proportionate amount was not includible as increased capital and rejected the alternative plea. Case-Laws Income Tax Thu, 25 Feb 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60874