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2019 (4) TMI 1124 - HC - Income TaxNature of expenses - lease premium amortised - revenue or capital expenditure - grant depreciation on the foregoing capital expenditure - HELD THAT:- Appeal admitted on question 1 and 2 Expenditure incurred towards increase in share capital by way of fee for merchant bankers, legal fees, stamp duty, registration charges, etc.- capital expenditure - HELD THAT:- This Court in case of Hindustan Lever Ltd. Vs. Commissioner of Income-Tax, reported in [2016 (11) TMI 969 - BOMBAY HIGH COURT] , after referring to and relying upon the decisions of Supreme Court in case of CIT Vs. Kodak India Ltd, [2001 (10) TMI 7 - SUPREME COURT] and Brooke Bond India Ltd. Vs. CIT, [1997 (2) TMI 11 - SUPREME COURT] held that the expenditure incurred for increase in the share capital is capital expenditure. This question is therefore not required to be entertained. Deduction of foregoing capital expenditure u/s 35D - HELD THAT:- Whether a banking company can be said to be an industrial undertaking is being considered by this Court in several Appeals. He drew our attention to a judgment of Kerala High Court in case of Dhanalaxmi Bank Ltd. Vs. Commissioner of Income-Tax [2018 (12) TMI 836 - KERALA HIGH COURT] , in which it was held that a banking company is also industrial undertaking and the expenditure incurred in relation to the share capital would be amortized u/s 35D.
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