1997 (2) TMI 11 - SC - Income Tax

Expenses for issue of shares - though the increase in the capital results in expansion of the capital base of the company and incidentally that would help in the business of the company and may also help in the profit-making, the expenses incurred in that connection still retain the character of a capital expenditure since the expenditure is directly related to the expansion of the capital base of the company - Tribunal was not right in sustaining the disallowance