company and adds to the capital cost of the company. Any alteration in or addition to the capital structure of the company essentially involved capital ... distinction between the loan capital and share capital was not clear. Both the capital, according to the assessee, were available for the working funds
capital reserve to this extent has been credited in the balance-sheet."
4. But the AAC opined that these affected the capital structure ... improving of a fixed capital asset it was attributable to capital. But if no alteration is made in the fixed capital asset by the payment
business of
general insurance. Section 10 stipulates that all shares in
the capital of every Indian insurance company which shall
stand transferred to and vested ... scheme;
(c) the constitution, name and registered office and
the capital structure of the acquiring company and
the issue and allotment of shares
constituting an enduring benefit or as an accretion to the capital or income-earning structure of the business."
15. In the instant case before ... running of the company. There was no question of improving the capital structure or the profit earning apparatus or earning capital or paying
business of the company and are treated as part of the capital structure. In this view, these two items have to be treated ... future use of the company so as to partake the character of capital. The said sum set apart for payment towards a specific liability cannot
trading structure and as such was a part of its capital structure. The Supreme Court emphasized that whether a particular receipt was capital or income ... broadly stated that what was received for the loss of capital was a capital receipt ; what was received as
profit in a trading transaction
company from where it was sought to be argued that the capital structure of the company indicated that unless the company had borrowed money
that these were not a part of the circulating capital. It belonged to the capital structure of profit-making apparatus. This is the real controversy ... with new pillars and, therefore, a major portion of the expenditure was capital expenditure and he had disallowed on estimate
trade there A are two types of capital, one circulating
capital and the other fixed capital. Fixed capital is what
the owner turns to profit ... possession; circulating capital is what he makes profit of
by parting with it and letting it change hands. Therefore,
circulating capital is capital which
expenditure ought to be charged to income or capital account. The case for charging it to capital might appear to be strengthened by the magnitude ... intrinsic nature a capital asset, then any sum paid to acquire it must surely be capital outlay. And I do not see how it could
