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| The Tax Publishers2020 TaxPub(DT) 3147 (Kol-Trib) INCOME TAX ACT, 1961
Section 37(1)
Expenditure incurred by assessee, if it was for issuance of bonus shares towards filing fees in ROC, then it should be allowed as revenue expenditure. However, AO was directed to verify whether expenditure claimed by assessee was incurred for issuance of bonus shares before allowing same.
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Business expenditure - Capital or revenue expenditure - Expenditure incurred by assessee claimed to be in relation to issuance of bonus of shares -
Assessee company paid fee for increase in share capital of company to ROC. AO disallowed the same on allegation that it was related to expansion of capital base, and was a capital expenditure. Held: Expenditure incurred by assessee, if it was for issuance of bonus shares towards filing fees in ROC, then it should be allowed as revenue expenditure. However, AO was directed to verify whether expenditure claimed by assessee was incurred for issuance of bonus shares before allowing same.
Followed:CIT v. General Insurance Corporation (2006) 286 ITR 232 (SC) : 2006 TaxPub(DT) 1870 (SC)
REFERRED :
FAVOUR : Matter remanded
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 14A
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