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Profit on Forfeiture of shares cannot be considered as revenue receipt
Case Law Details
- Case Name
- Sunita Gupta Share Brokers Limited Vs Assistant Commissioner of Income Tax (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2007-08
- Courts
- All ITAT, ITAT Delhi
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Sunita Gupta Share Brokers Limited v. ACIT (ITAT Delhi)- In ‘Multan Electric Supply Co. Ltd..’ (supra), it has been held, inter alia, that any profit which arises on the forfeiture of shares is neither a revenue receipt, nor profit on the working of the company, but is simply the circulating capital of the company, and as such, a capital asset. Taking note of this, in “Asiatic Oxygen Ltd.”(supra), it was observed that Schedule VI – Part I of the Companies Act contains the form in which the balance sheet is to be prepared by the company and it indicate that all capital res...
