TMI Blog2018 (1) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case, the bonds issued by the assessee were in the nature of a debt instrument and the stamp duty paid to Government of Karnataka by the assessee would be eligible as revenue expenditure as it will not enhance the capital base of the assessee. There is a distinction between the expenditure incurred for raising the loan and the instrument which had an effect of increasing the share capital. - Decided against revenue - I.T.A Nos.888 & 889/Bang/2017 - - - Dated:- 31-1-2018 - SHRI. JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER Assessee by : Shri. A. C. Raju, CA Revenue by : Shri. Harinder Kumar, CIT-DR-III O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : These are appeals filed by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. The Tribunal vide its order dt.28.06.2017 (supra), in para 6 had held as under : 06. We have heard the rival contentions and perused the material on record. It is the case of the AO that the assessee has invested in equity shares and therefore the AO has worked out the disallowance u/s.14A. During the course of argument, we enquired whether the shares were allotted and if allotted, any dividend income was accrued to the assessee or not. In response to that, it was submitted by both the parties that neither the shares were allotted during the year under consideration, nor any dividend income had accrued to the assessee against proposed allotment. In our view, there is a finding by the Kolkata Tribunal to the effect that the share appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Ltd v. CIT [(1997) 225 ITR 798]. 09. We have heard the rival contentions and perused the material on record. In our view, the issue is squarely covered in favour of the assessee by the Hon ble Supreme Court in the matter of India Cements (supra) had held that the debenture when issued is a loan and therefore the expenditure incurred for issuance of debenture would be admissible as revenue expenditure. Similarly in the present case, the bonds issued by the assessee were in the nature of a debt instrument and the stamp duty paid to Government of Karnataka by the assessee would be eligible as revenue expenditure as it will not enhance the capital base of the assessee. There is a distinction between the expenditure incurred for raising the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
