Further issue of share capital

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CA CS Amit S. Kedia (Querist)
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15 September 2009 Dear Experts,

Can u tell me whether Share issue exp(Stamping,ROC fees,ROC Charges,Documentation Charges etc) on further share capital issue is allowed as a deduction U/s 37 Or It will be treated as preliminery Exp U/s 35(D).
Waiting for a prompt reply.........! Thanx in Advance.

Ankur Garg

Ankur Garg (Expert)
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16 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

Ankur Garg

Ankur Garg (Expert)
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16 September 2009 But if you are talking about fees for form-2 for allotment of shares then such fees is revenue in nature and deductible u/s 37.

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