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2018 (4) TMI 804 - HC - Income TaxDisallowing the expenditure incurred in connection with the share issue - nature of expenditure - Held that:- From the order, we find that the Tribunal has rightly applied the decision of Brooke Bond India Ltd., Vs. Commissioner of Income Tax reported in (1997 (2) TMI 11 - SUPREME Court) and held that the expenditure incurred in respect of the issue of share is "capital expenditure". Claim of depreciation - Held that:- Since the authorities below as well as the Income Tax Appellate Tribunal found that the SRHSHL had fabricated the machinery by 22.7.94 and sold the machinery to Veera Enterprises on 22.9.95 and Veera Enterprises sold the machinery to the assessee on 25.9.95, which in turn is stated to have leased the machinery back to the vendor, SRHSHL. While the sale was effected in favour of Veera Enterprises, the Tribunal noted the sale consideration at ₹ 16,86,904/- including the sales tax. However, when the machinery was sold to the assessee / company, it was for ₹ 73 lakhs. Thus, Tribunal rightly suspected the bonafides of the transaction and remanded the matter back only for a limited purpose. Thus, we find that there is no error in the order passed by the Tribunal. - Decided against the assessee
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