Share issue expenses

As per provisions of sec. 78 of Companies Act,1956 , a Company can utilise amount collected through share premium in writing off issue expenses incurred by the company... The amount can also be used to write off any issue expenses in relation to debentures issued by the company....

Moreover, you cannot show in P&L  , because if you show it will be disallowed as per sec 37(1) of Income Tax Act.. According to Income Tax Act, Exp. on raising equity share capital and preference share capital are not deductible as per sec 37(1). Only exp. on issue of bonus shares is deductible.. So you have only one option in case its a fresh issue you will have to write off those issue exp. to securities premium A/c only...

Hope you understood..