Deduction of Filing Fess paid on Form -5 to ROC

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This query is : Resolved

Mohit Garg (Querist)

10 September 2010 Dear Professional Friends,

My company has paid Rs.4.5 Lacs to ROC towards Increasing the Authorised Capital. I have come to know from SC Judgement that it is Capital Expenditure. I want to know under which provision or Section we can capitalise it and claim deduction under IT Act.
Thanks for your support and advise
Regards,
Mohit

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

10 September 2010 Charge the entire amount in P & L account. Disallow for tax purpose under section 37(1)
and claim 1/5th every year under section 35D.

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Mohit Garg

Mohit Garg (Querist)

10 September 2010 Dear Sir,

Thanks for reply.
But i have discussed the same with auditors section 35D specifically says about Preliminary Exp. means exp. incurred at the time of incorporation.
As per SC judgement we can't charge in P&L account.
Can we claim it under any other provision or section. one alternatively thats comes in my mind to capitalise this amount and claim 1/5th every year. But not able to find under which section or privision we can do that. Can't claim the same under IT act? Pls. confirm.

thanks again for your inputs.

regards,
Mohit

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

10 September 2010 But Delhi high court in (2001) 250 ITR 338 said 35D can be claimed if such expenditure is incurred in connection with the expansion of the industrial undertaking or in connection with setting up of the new industrial undertaking.

Mohit Garg

Mohit Garg (Querist)

13 September 2010 Thanks Sir,
In case need further clarification on the issue i will come back again.
Hope you would not mind it.

Thanks again.

regards,
Mohit

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