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2010 (11) TMI 205 - AT - Income TaxPenalty u/s 271(1)(c) - Addition on account of disallowance of capital expenditure - Appellant debited Rs. 13,86,500/- to P & L A/c. under the head “Administrative & Selling expenses”. As seen from Schedule-14, the said expenses included “Stamp Duty paid” of Rs. 1,73,040 for increasing the share capital - The Apex Court in the case of Punjab State Industrial Corporation v. CIT (1996 -TMI - 5589 - SUPREME Court) and Brooke Bond India Ltd. v. CIT [1997 -TMI - 5590 - SUPREME Court] held that expenditure incurred in connection with increasing share capital by a company would not be allowable as revenue expenditure - Since the assessee has made false and wrong claim in the return of income of deduction of the capital expenditure, therefore, the authorities below have rightly levied and confirmed the penalty in the matter - Appeal is dismissed
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