Expenses incurred for increasing authorized capital claiming depreciation thereof

Facts:

Assesee had to increase their authorized capital which they capitalized and claimed depreciation on the same. AO disallowed the spend besides did not allow the depreciation claim either. On appeal CIT(A) held that since no expense was claimed the same should not be disallowed but held that indirectly claiming it via depreciation was also incorrect. On higher appeal -

Held against the assessee that the disallowed/impermissible expense cannot be claimed adopting depreciation as a backdoor route.

Applied:

International Computers Indian Manufacture Ltd. 2015 TaxPub(DT) 0994 (Bom-HC)

Autolite India Ltd v. CIT (2003) 264 ITR 117 (Raj) : 2003 TaxPub(DT) 1363 (Raj-HC)

CIT v. Mahindra Ugine and Steel Co. Ltd. (2001) 250 ITR 84 (Bom) : 2001 TaxPub(DT) 0303 (Bom-HC)

Case: DCIT v. H.K. Ispat (P) Ltd. 2023 TaxPub(DT) 1848 (Ahd-Trib)