M/S. BERGER PAINTS INDIA LTD. versus C. I. T. DELHI-V

M/S. BERGER PAINTS INDIA LTD. versus C. I. T. DELHI-V

Premium collected on subscribed share capital is not 'capital employed in the business of the company' within Section 35D(3)(b), and thus cannot be considered for deduction under that section.

Source-derived case information.

Parties
Appellant: M/S. Berger Paints India Ltd.; Respondent: C. I. T. Delhi-V
Jurisdiction
India
Judgment Date
28 March 2017
Procedural Posture
Civil Appeal / Final Judgment on Appeal From Delhi High Court
Outcome
Appeals dismissed
Legal Topics
Deduction Under Section 35 D, Share Premium as Capital Employed
Income Tax Deduction Under Section 35 D Share Premium as Capital Employed

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Parties

M/S. Berger Paints India Ltd.

Appellant

C. I. T. Delhi-V

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal From Delhi High Court

Legal Issues

  1. 1 Whether premium collected on subscribed share capital of a company is capital employed in the business of the company within the meaning of s.35D for claiming deduction

Ratio Decidendi

Premium collected on subscribed share capital is not 'capital employed in the business of the company' within Section 35D(3)(b), and thus cannot be considered for deduction under that section.

Court Disposition

Appeals dismissed

Orders

  • Appellant not entitled to claim any deduction in relation to amount received towards premium from shareholders on issued shares.
  • Affirmation of High Court and Tribunal orders disallowing deduction for share premium.