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2011 (5) TMI 567 - HC - Income TaxDisallowance of deduction u/s 35D - Capital or revenue expenditure - Held that:- As decided in Commissioner of Income Tax and Anr. Vs. United Breweries Ltd. [2010 (1) TMI 86 - KARNATAKA HIGH COURT] the advances were made to business associate for issue of shares in future and this expenditure incurred for securing shares was treated per se a capital expenditure and not revenue expenditure When Piem decided not to issue any shares and agreed to refund the money thereupon, an arrangement was arrived at between the parties as per the said money was payable by Makan on behalf of Piem, which arrangement was accepted by the assessee discharging Piem and treating the money payable by Makan to assessee as inter corporate deposit - Since the matter is to be examined afresh and no prejudice is caused to the Revenue in any manner, no question of law arises - The question of law as proposed, is clearly misconceived, as the Tribunal has not given any finding holding that provisions of Section 35D of the Act are applicable. Appeal is allowed by way of remand
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