1991 (4) TMI 34

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....partmental reference relating to the assessee's surtax assessment for the assessment years 1967-68 to 1972-73, the Tribunal has referred to this court the following question of law for our opinion under section 256(1) of the Income-tax Act, 1961, as applied to surtax tinder section 18 of the Companies (Profits) Surtax Act, 1964 : " Whether, on the facts and in the circumstances of the case and ....

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....otal par value of Rs. 50,000 free of all deductions on account of Indian income-tax or otherwise. The shares were, accordingly, allotted and the technical designs and know-how obtained by the assessee under the agreement were shown as part of the fixed assets of the assessee-company in its balance-sheet at the value of Rs. 1 lakh representing the par value of the shares allotted to the two compani....

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.... the capital of a company for the purposes of this Act. The Departmental authorities took the view that, in so far as the assessee had issued shares of the face value of Rs. 50,000 each to the aforesaid two companies, and had created an asset in the form of designs and drawings, the capital was brought into existence by creating a book asset and, therefore, to this extent, the share capital was....

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....sset, that share capital will not be treated as capital for the purpose of capital computation. He reiterated that the shares in the aforesaid two companies of the face value of Rs. 50,000 each were issued without equal money being received from them and book assets only meant an asset reflected in the books. Drawings and designs, lie further stated, are reflected in the assessee's books. Shri Meh....