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2011 (4) TMI 556 - MADRAS HIGH COURTExpenditure incurred on issue of shares (public issue expneses) - Assessee has made a claim under section 35D of the Act on the ground that the expenditure incurred was in respect of public issue expenses, which was in respect of expansion of his business. The assessing officer rejected the claim of the assessee on the ground that the company was incorporated on 19.4.1976, whereas the public issue was made in the financial year 31-03-1995 relating to the assessment year 1995-96 and the public issue expenses claimed is not as per section 35D, which deals only with preliminary expenses - CIT(A) and ITAT have allowed the deduction u/s 35D - Held that:- Deduction of such expenditure is not allowable u/s 35D - Decided against the assessee. Payment of bonus - violation of section 40A(9) - whether the amount transferred to the trust was allowable as a deduction even though no such deduction was allowable under section 40A(9) - Held that:- The payment was made by the assessee through an irrevocable trust. The question which to be seen is whether the deduction was allowable as laid down in section 40A(9). In fact, section 40A reads as "the provisions of this section shall have effect notwithstanding anything to the contrary contained in any other provision of this Act relating to the computation of income under the head "Profits and gains of business or profession". Therefore, it cannot be said that section 40A(9) has no relevance after the insertion of section 43B w.e.f.1.4.1984. - Decided against the assessee.
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