COMMISSIONER OF INCOME-TAX, WEST BENGAL vs ALLAHABAD BANK LIMITED

The Supreme Court held that a share premium account can be included in the paid-up capital for computing rebate under the Finance Acts of 1956 and 1957 if it is maintained as an identifiable separate account within the reserves. The Court clarified that the definition of 'share premium account' does not necessitate it being apart from reserves, and thus, the Income Tax Officer's exclusion of the share premium from the paid-up capital was incorrect. The ruling affirmed the decisions of the Appellate Assistant Commissioner, Appellate Tribunal, and the High Court, allowing the inclusion of the share premium in the rebate calculation.