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| The Tax Publishers2022 TaxPub(DT) 0280 (Pune-Trib) INCOME TAX ACT, 1961
Section 37(1)
On account of expenditure incurred on aborted initial public offer (IPO) no new asset had come into existence nor any benefit of enduring nature accrued to assessee. Therefore, expenditure was allowable as revenue expenditure.
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Capital or revenue expenditure - Expenditure incurred on aborted initial public offer (IPO) - -
Assessee claimed deduction of expenditure of Rs. 24,78,871 incurred on aborted initial public offer (IPO). AO held the same to be of capital in nature.Held: As a result of subject expenditure no new asset had come into existence nor any benefit of enduring nature accrued to assessee. Therefore, expenditure incurred on abandoned IPO was allowable as revenue expenditure.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 37(1) Section 40(a)(ii)
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