Roc fees allowable under income tax act

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Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2015 Please provide me with any case study where fees paid to Registrar of Companies for enhancement of the capital of a Company is allowable under Income Tax Act, 1961!!!

Ankur Singhal

Ankur Singhal (Expert)

31 December 2015 Dear
This expense will be disallowed as it is a capital expenditure as decided by the Apex court.
Punjab State Industrial Development Corporation Ltd. v. CIT (S.C)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

31 December 2015 It is not allowable under the Income Tax Act. However, you may conclude by reading the linked Article-
https://taxguru.in/income-tax/section-37-fees-paid-enhancement-authorized-capital-revenue-capital-expenditure.html

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2015 In CIT v. Kisenchand Chellamm (India) P. Ltd. [1981] 130 ITR 385 , this court while considering whether the

assessee's claim for fees paid for raising capital of the company to the Registrar of Companies is revenue expenditure,

held that the amount was wholly and exclusively laid out for the purpose of the business. Therefore, it is revenue in

nature and deductible as such. This decision was rendered by following the decision of the Supreme Court in the case

of India Cements Ltd. v. CIT [1966] 60 ITR 52 (SC).

Ankur Singhal

Ankur Singhal (Expert)

31 December 2015 Dear in India Cements ltd.
it was not the case of enhancement of existing share capital.