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2013 (10) TMI 112 - HC - Income TaxShare issue expenses paid to be treated as capital expenditure or revenue expenditure - Assessee admittedly took steps to go for public issue and after incurring expenditure, just before the public issue, by reason of the orders from the SEBI, the assessee could not go in for public issue – Held that:- Reliance has been placed upon the judgment in the case of BROOKE BOND INDIA LIMITED v. CIT [1997 (2) TMI 11 - SUPREME Court] - Considering the purposes for which the company incurred this expenditure, the fact that the efforts had got frustrated later on, would not alter the nature of the expenditure and it remains the capital expenditure – In the present case, admittedly the expenses were incurred by the assessee for the purpose of putting up publication. This was done for the purpose of widening its capital base. Even though the assessee stated that this expenditure was incurred so as to improve the cash availability, yet, the fact remains that the expenditure incurred was only for the purpose of expansion of the capital base – Decided against the Assessee.
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