M/S. Berger Paints India Ltd vs C.I.T., Delhi-V

The Supreme Court held that the term 'capital employed in the business of the company' under Section 35D of the Income Tax Act does not include the premium received on shares. The Court affirmed the Tribunal's decision which reversed the Commissioner of Income Tax's ruling that allowed the deduction of preliminary expenses based on share premium. The Court concluded that the premium on shares is not part of the capital employed for the purpose of claiming deductions under Section 35D, thereby upholding the Tribunal's order.