What your view from tax point of view regards the Follow on Public Issue exp of a listed company in below case ?
The follow on issue came in the end of year and expense also incurrend in that accounting year. Issue cloased on the day of another accounting year. In the year of issue the Company booked the public issue expense as preliminary exp and amortise vide 1/5 th basis. In the next accounting year the issue was not subscribe and money was pulled back . As the issue not succedded the benefit is not realisable for more than one accounting year. Now, what is the treatement for 4/5th amount of public issue exp so remained unamortise or of the full amount.
- Whether the balance 4/5 th portion be treated as expense in accounting year of issue close ?
- Whether the expense to be contine to be amortise for another four year. ? or
- Whether the return of the first year to be revised and fully public issue exp be booked as expenditure ?
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