Profit on Forfeiture of shares cannot be considered as revenue receipt

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

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