Supreme Court · 2006 INSC 651 · Decided 25 September 2006
Commissioner of Income Tax, Mumbai v. M/S. General Insurance Corporation
- Court
- Supreme Court of India
- Citation
- 2006 INSC 651 · [2006] SUPP. 6 S.C.R. 561
- Case number
- CIVIL APPEAL No. 4422/2001
- Decided
- 25 September 2006
- Bench
- ASHOK BHAN, MARKANDEY KATJU (2-judge bench)
- Outcome
- Dismissed
- Case type
- Civil
- Acts & sections cited
- Companies Act Section 8
Headnote
B Companies Act, 1956: Section 8 I-Expenditure incurred in connection with issuance of bonus shares-Held: ls revenue expenditure and not capital expenditure. C The question which has arisen for consideration in the present appeal is whether the expenditure incurred in connection with the issuance Dismissing the appeal, the Court HELD: 1.1. The expenditure on issuance of bonus shares is revenue expenditure and not capital expenditure. 1570-AJ D 1.2. Issuance of bonus shares does not result in any inflow of fresh funds or increase in the capital employed. The capital base of the
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