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2012 (3) TMI 519 - BOMBAY HIGH COURTShare issue expenses attributable to acquisition of assets - Held that:- In the previous Assessment Year 1983-84, the Assessee incurred an expenditure of ₹ 65.55 lacs in connection with the issue of share capital of which the Assessee claimed that the expenditure in the amount of ₹ 45.99 lacs was directly connected to the acquisition of capital assets in the nature of plant and machinery whereas the balance of ₹ 16.55 lacs was incurred on revenue account. The Tribunal by its order dated 10 March 2006 held that share issue expenses to the extent of ₹ 45.99 lacs were attributable to the acquisition of assets in the form of plant and machinery and should be capitalized under that head and the depreciation/investment allowance would have to be allowed. Assessee is entitled to the deduction in respect of enhanced liability of ₹ 612.32 lacs being payment of interest to be made under the Drug Price Control Order,1979 notwithstanding the fact that the provisions of Section 43B was not complied with Exclude expenditure incurred on Insurance Premium for Health Insurance Scheme of the employees and club membership fees for the purpose of computing disallowance u/s.40A(5) and 40(c)
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