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2015 (3) TMI 717 - MADRAS HIGH COURTTransfer to the General Reserve on amalgamation - whether is not in the nature of any benefit or perquisite and thus not taxable under Section 28(iv) - Held that:- A plain reading of the provision of Section 28(iv) makes it clear that the amount reflected in the balance sheet of the assessee under the head 'reserves and surplus' cannot be treated as a benefit or perquisite arising from business or exercise of profession. The difference amount post amalgamation was the amalgamation reserve and it could not be said that it is out of normal transaction of the business. The present transaction is capital in nature arose on account of amalgamation of four companies. Hence, we have no hesitation to hold that the manner in which the Revenue wants to treat this amount is not in consonance with Section 28(iv) of the Income Tax Act. Tribunal was right in holding that the amounts transferred by the assessee company to the General Reserve on amalgamation is not in the nature of any benefit or perquisite and thus not taxable under Section 28(iv) of the Income Tax Act, 1961 - Decided against revenue.
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