Supreme Court · 1996 INSC 611 · Decided 2 May 1996
M/S. Sundaram Clayton LTD. ETC. v. Commissioner of Income Tax
- Court
- Supreme Court of India
- Citation
- 1996 INSC 611 · [1996] SUPP. 2 S.C.R. 253
- Case number
- CIVIL APPEAL No. 4360/1981
- Decided
- 2 May 1996
- Bench
- G.N. RAY, B.L. HANSARIA (2-judge bench)
- Outcome
- Dismissed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act Section 256(1)
Headnote
Companies' (Profits) Surtax Act 1964-Schedule II, Rule 3---Computa­ tion of capital-Whether bonus issue of shares resulted in prop01tionate in­ crease in share capital-Held, no; issue of bonus shares only resulted in conversion of resC1ves and did not add to the capital base which was 1101 I{, Rules 1 (iv), (v J and 3---Computation of capital-Held, for assessee to benefit from second part of Rule 3 capital base must have increased during previous year on accou11t of D increase of paid-up share capital or issue of debentures or b01rowing of a11y moneys. Interpretation of
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