2001 (12) TMI 32

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..... essee, even though it had not extended any industrial undertaking or set up any new industrial unit, and even though it had commenced its business long prior to March 31, 1970, claimed benefit under section 35D of the Income-tax Act, 1961, and sought to claim the expenditure it had incurred in connection with the increase in its paid up capital from Rs. 25 lakhs to Rs. 60.70 lakhs. The aggregate e .....

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..... a decision of this court in the case of CIT v. Kisenchand Chellaram (India) Pvt. Ltd. [1981] 130 ITR 385 wherein it was held that the expenditure incurred for increasing the share capital of a company was revenue expenditure. Subsequently, the Supreme Court, in the case of Brooke Bond India Ltd. v. CIT [1997] 225 ITR 798, held that such expenditure is not revenue expenditure but capital expenditur .....

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