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2009 (12) TMI 531 - HC - Income TaxAssessee went for public issue for raising capital - expenditure incurred for raising capital was claimed as deduction - short-term deposit of the application money and share allotment money which earned interest - assessed as income from other sources - Assessing Officer accepted this as expenditure incurred in relation to the shares allotted to the appellant from the subsidiary company - assessee contended that expenditure incurred for investment in another company in the way of purchase of shares is not a capital expenditure and even the Assessing Officer allowed part of the claim which, according to him, is attributable to the actual number of shares allotted to the assessee during the previous year - According to him, the entire expenditure claimed should have been allowed as this is not hit by the decision of the Supreme Court in Brooke Bond's case - Held that: - No difference between the share capital raised for the capital expansion of the company and the share capital raised and utilized for acquiring shares of a subsidiary company because in either case expenditure is for raising capital - appellant is not entitled to deduction for the expenditure incurred for investment in the shares of a subsidiary company - Appeal is dismissed
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