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2006 (4) TMI 92 - HC - Income TaxESI contribution (interpretation to section 43B) - admittedly, the assessee has not paid the said amount to the ESI Department. In the accounts, a provision is made for payment of the said amount. Therefore without making the actual payment the assessee was not entitled to the aforesaid deduction - Amount paid for issue of shares - held that the expenditure incurred by a company in connection with issue of shares, with a view to increase its share capital, is directly related to the expansion of the capital base of the company and is capital expenditure, even though it may incidentally help in the business of the company and in the profit-making. Therefore, it was held that the expenditure incurred with reference to issue of shares is not allowable deduction.
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