Admissability of Share Transfer Expenses
This query is : Resolved
17 August 2009
Dear All
A Limited company has allocated part of its IPO expenses to Promoters and the promoters claimed the same as expenses on transfer, while computing Capital gain in their hand. The expenses allocated are pertaining to the issue of promoters holding through the IPO Issue.
Query
Whether a limited company can allocate the IPO-Share Issue expenses to its promoters?
Whether the promoters can claim Capital Gain Exemption by treating the same as expenses on transfer?
Can anybody refer some Case Laws in this regard?
A Limited company has allocated part of its IPO expenses to Promoters and the promoters claimed the same as expenses on transfer, while computing Capital gain in their hand. The expenses allocated are pertaining to the issue of promoters holding through the IPO Issue.
Query
Whether a limited company can allocate the IPO-Share Issue expenses to its promoters?
Whether the promoters can claim Capital Gain Exemption by treating the same as expenses on transfer?
Can anybody refer some Case Laws in this regard?
17 August 2009
The expenses of one entity cannot be shifted to others by journal entries or without basis.
The ipo expenses relates to the company. A company is a seperate entity under law. Therefore the promoters cannot share the expenses.
The expenses cannot be transferred and they cannot claim the same in their individual return.
Case laws I will refer and tell in a couple of days.
The ipo expenses relates to the company. A company is a seperate entity under law. Therefore the promoters cannot share the expenses.
The expenses cannot be transferred and they cannot claim the same in their individual return.
Case laws I will refer and tell in a couple of days.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Exiting partner in partnership firm in gst portal
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Traces submitting correction statement error
- TDS _Long term Capital Gain ref.sec 214 Table 2
- IT returns for fresh job holders
- ITR-Capital Gain
- Reporting in TDS return
- CASH GIFT FROM BLOOD RELATIVE
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- Rent claimed on building given on permissive possession basis
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
