692/CBDT.

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....ompany, a certain sum was added to the capital of the company as on the first day of the previous year in consideration of the resultant increase in its paid up share Capital during the previous year as per Rule 3 of the Second Schedule to surtax Act, 1964. This addition to the capital was irregular and uncalled for. 2. The capital of a company as defined in Rule 1 in the Second Schedule to the C....

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....amount of the capital of the company as on the first day of the relevant previous year only where the capital as computed in accordance with Rules 1 and 2 is increased during the previous year. As there was no such increase during the previous year in the case referred to above, Rule 3 had no application at all. 3. The Board desires that the above instructions may be brought to the notice of all ....