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2013 (12) TMI 905 - ITAT CHENNAIPre-operative expenses - Expenses on business expansion activities - Held that:- The increase in capital base after issue of additional equity shares by private placement, the assessee-company intends to expand its existing project - The assessee has invested substantial amount in purchase of Machineries etc., Further, with the increase in number of Windmills, the sales turnover of the assessee has increased almost three fold from Financial Year 2008-09 to Financial Year 2010-11 - The expenditure incurred towards raising of additional equity shares by private placement can be attributed to extension of undertaking and is thus eligible for amortization under the provisions of section 35D - Following EID Parry (India) Ltd., Vs. DCIT [2012 (7) TMI 698 - MADRAS HIGH COURT] - where expenditure has been incurred in connection with issue of shares which are directly relatable to expansion to capital base of the company for raising of new projects, it would be allowable u/s. 35D - Decided in favour of assessee. Deduction u/s 80IB - Held that:- The assessee for the first time raised the issue of additional/higher deduction amounting to ₹ 50,61,142/- u/s.80IB before the CIT(Appeals) - This claim was never made before Assessing Officer - Decided against assessee.
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