exp. related to authorised capital

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Tara (Querist)
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09 April 2009 How we should treat exp. related to increase in authorised capital . whether we can treat as preliminary exp. and write off in 5 years or we should treat as roc expenses and in computation disallowed them .

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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09 April 2009 Since the authorised capital is increased after the commnecement of the business it will not be treated as preliminery expenses.

You have to treat it as roc expenses and in computatin disallow them.

DEEPAK GOYAL

DEEPAK GOYAL (Expert)
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09 April 2009 you have to w/off it in 5 years (20%) as per companies act and 10% as income tax

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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09 April 2009 if its for extension for an industrial taking or for setting up a new industrial unit than its covered under sec. 35D

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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09 April 2009 and if its not covered under sec. 35D than it will be capital exp. and will be disallowed as per supreme court judgement in case of punjab state industrial development corporation ltd. V/S CIT

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