Deduction u/s 35 D

Last updated: 02 September 2007

Court :
High Court

Brief :
neither reserve nor the surplus of the assessee is a part of the capital employed in the business of the company.

Citation :
Berger Paints India Ltd. Vs. C.I.T.

Deduction u/s 35D Berger Paints India Ltd. Vs. C.I.T. 05/15/2006 [2007] 292 ITR 658 (Delhi) Case Fact: Whether, premium on issue of share is part of "Capital Employed" in the business of company with in the meaning of section 35D? Decision: Held by the Hon`ble Court that, as per section 35D(3) neither reserve nor the surplus of the assessee is a part of the capital employed in the business of the company. Therefore security premium collected by the assessee would not constitute a part of the "capital employed in the business of the company".