R.V. Easwar, Judicial Member - (1.) THIS appeal by the assessee relates to the assessment year 1984-85 and is directed against the order of the CIT(A) dated 18-5-1989.
(2.) The assessee is a public limited company. During the relevant accounting year it received a sum of R. 3,96,961 representing interest on account of delay in payment of the call money from the shareholders. The amount was claimed not taxable by the assessee. The ITO as well as the CIT (A) brought the amount to tax. In the further appeal before us we find that the issue has been decided against the assessee by the order of the Tribunal dated 2-4-1983 in the assessee's own case for the assessment years 1968-69 and 1969-70 in ITA Nos. 2461 and 2462 (Cal.) of 1981. Respectfully following the aforesaid order, we dismiss the first ground. The second and the third grounds are as under:� 2. The Ld. Commissioner of Income-tax (Appeals) erred in confirming the inclusion in the total income of the sum of Rs.1,83,000 being the sum forfeited from the shareholders in default of payment of call money. 3. The Ld. Commissioner of Income-tax (Appeals) erred in confirming the inclusion in the total income of Rs.1,48,000 being premium received on re-issue of forfeited shares.
(3.) IN the course of the assessment proceedings, the assessee claimed that the amount of Rs.1.83lakhs being the amount forfeited by the assessee for default in payment of call monies was a capital receipt and exempt from tax. Similar exemption was claimed in respect of premium of Rs.1.48lakhs received by the assessee on re-issue of the forfeited shares. The amount forfeited was credited by the assessee to the "capital reserve" account. The premium received was credited to the "share premium account" and exhibited accordingly in the balance sheet. Both the Assessing Officer and the CIT (A) have taken the view that the aforesaid two amounts are not exempt from tax. We are of the view that their decision cannot be upheld.;