expenditure incurred for raising of authorised capital

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vineetha.m.k

vineetha.m.k (Querist)

29 September 2009 Treatment of expenditure incurred for raising of authorised capital in total income preparation

vinod kumar lalwani

vinod kumar lalwani (Expert)

29 September 2009 if company is running company then these expenses are revenue expenses and and should be treated as administration expenses and in case of new company these are capital expenses and should be carried forwarded for writing off in next 5 or 10 years.

Ankur Garg

Ankur Garg (Expert)

29 September 2009 Fees paid to the RoC for increase in authorised capital is a capital expenditure not deductible u/s 37(1) but deductible u/s 35D.

Citation:-

1. Punjab State Industrial Development Corporation Ltd 225 ITR 792 (Sc).

2. Mohan Meakin Breweries Ltd 117 ITR 501 (HP)- says that Fees paid for increase of authorised capital is an inadmissable expenses.

Regards

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