Income Tax cannot be levied on Securities Premium Merely because It Used to Set Off Losses

Hindustan Coca Cola Beverages Private Limited Vs DCIT (ITAT Delhi) The issue under consideration is whether tax is applicable on securities premium merely because it used to set off losses? ITAT states that, the ld. CIT(A) while deleting the addition has held that security premium account, being part of capital of the company is not in the nature of an entry bearing the character of income and since it has not been credited by debiting the Profit & Loss Account of the company, its reversal in any subsequent year is not required to be reflected in the profit & loss account. In other wor...