M/S. BERGER PAINTS INDIA LTD. vs C.I.T., DELHI-V

The Supreme Court addressed the interpretation of 'capital employed in the business of the company' under Section 35D of the Income Tax Act, holding that share premium received on issued shares qualifies as part of the capital employed. The Court upheld the decision of the Commissioner of Income Tax, which allowed the appellant's claim for deduction of preliminary expenses based on this interpretation. Consequently, the appeals were dismissed, affirming the lower court's ruling in favor of the appellant.