Expenses on increase in Authorised Capital, Income Tax

[amol changedia]

Hi,

I suppose that the Expenses on increase in Authorised Shares Capital by A Pvt Ltd Company is a Capital Expenditure based on number of case laws. 

But what treatment should be given to capital expenditure. Whether the same is allowable expenditure or not? If yes under which section and if no why.

 

Posts / Replies

[CA GOPALJI AGRAWAL]

Since it is in the nature of capital expenditure as decided by Apex Court, it would not be allowed under any specific or residuary section 37(1) of the Act.