Expenditure on Increase in the Authorized Capital
This query is : Resolved
05 May 2010
Is expenditure incurred on Increase in the Authorized capital i.e. relating to stamp duty and registration a revenue or capital expenditure?
05 May 2010
If you aske me from Accouting perspective the expenditure is to be charged to P &L Account, however the expenditure is not allowable at all under income tax lesat to say about the capital expenditure.
05 May 2010
can you quote some case law?
05 May 2010
The expenditure incurred for raising additional capital by issue of ordinary shares is a capital expenditure.
Citation :- Vazir Sultan Tobacco Co. Ltd. v. CIT [1988] 41 Taxman 7(AP).
Citation :- Vazir Sultan Tobacco Co. Ltd. v. CIT [1988] 41 Taxman 7(AP).
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