2002 (5) TMI 216

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of Rs. 1,25,000 incurred by the assessee as revenue expenditure in nature and allowable as deduction." 3. Assessee wanted to go in for a public issue and incurred inter alia the following expenditure- "Details of Public Issue Promotion Expenses ------------------------------------------------------------------------------------- S. No. Date Amount Particulars of Payment ------------------------------------------------------------------------------------- 1. 20-1-1995 5,000.00 Cheque No. 093370 paid for Advance for lawn booking for public issue meeting 2. 7-2-1995 18,000.00 Cheque No. 093381 paid and bill settled 3. 25-3-1995 7,190.00 Travelling Bill of Vidharbha Holdings paid vide there bill No. MB/93/15 dated 21-2-1995 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... for deduction under the provisions of section 35 and so, he has not pressed the grounds taken before us on that aspect. He conceded the position that the amount has to be allowed as revenue expenditure or disallowed as capital expenditure. He contended that it was allowable as revenue expenditure not withstanding the decision of the Apex Court in the case of Brooke Bond India Ltd. v. CIT [1997] 225 ITR 798 because in that decision, the Apex Court was considering the expenditure incurred in connection with the issue of shares, where there was an increase in capital base. His contention is that the said decision cannot be roped in by the Revenue in a case where public issue was simply contemplated, but the same did not materialise. He mention .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ative. We find support for our views in this behalf, from the following remarks of the learned Author, Sampath Iyengar in law of Income-tax (9th Edition), 2nd Volume pp. 2610-2611. "98. Object of expenditure alone counts.--It should be remembered that in Viscount Case's speech the emphasis was that the expenditure would be attributable to capital if it is made with a view to bringing an asset or advantage into existence. It is not necessary therefore that the expenditure should have that result; it is the object, alone that counts. Thus, expenditure incurred in attempting to get a licence for trade though no licence is issued or to secure in agency or the continuance of the sole agency of a business, though no such agency is secured or to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X