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2013 (7) TMI 166 - AT - Income TaxExpenses for issue of shares to Qualified Institutional Buyers - Disallowance u/s 35D - Held that:- Assessee has not complied with any one of the conditions laid down under section 35D. No merit in the contention of the assessee that fee paid is the nature of brokerage or other issue expenses, as fee, brokerage and other expenses are distinct in nature. Hence, the fee payment made by the assessee company in connection with the issue of shares is not eligible for deduction under section 35D. Also of the view that the alternative contention of the assessee for allowing the entire expenses as of revenue nature, is devoid of merit, since the expenses, which are incurred in connection with the issue of shares to increase the capital base of the company, are obviously of capital nature. Remit the entire issue back to the file of the CIT(A) for reconsideration.
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