Oracle Grani To Ltd. v. ACIT - Taxpublishers.in

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The Tax Publishers2019 TaxPub(DT) 2453 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 35D

Expenses incurred on increasing capital and fees paid to RoC for increase in authorized capital was capital expenditure and could not be allowed as revenue expenditure under section 35D.

Business deduction under section 35D - Allowability - ROC charges paid for increasing share capital -

Assessee claimed deduction under section 35D of stamping and ROC charges paid for increasing share capital. Held: Expenses incurred on increasing capital and fees paid to Registrar of Companies for increase in authorized capital was capital expenditure and could not be allowed as revenue expenditure under section 35D.

Relied: Vareli Textile Ltd. (2006) 284 ITR 238 (Guj) : 2006 TaxPub(DT) `1314 (Guj-HC), Tungabhabdra Industries Ltd. (1994) 207 ITR 553 (Cal) : 1994 TaxPub(DT) 110 (Cal-HC) and Punjab State Industrial Development Corporation Ltd. v. CIT (1997) 225 ITR 792 (SC) : 1997 TaxPub(DT) 919 (SC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 36(1)(va)