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TMI Blog2019 (2) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.1 Facts in brief are that the assessee being resident corporate entity was assessed for impugned AY on 19/06/2014 u/s 143(3) by Ld. Deputy Commissioner of Income Tax-Circle 9(3), Mumbai [AO] at Rs. 72.25 Crores after certain additions / disallowances as against revised returned income of Rs. 52.03 Crores e-filed by the assessee on 24/07/2013. The assessee had claimed an expenditure of Rs. 13.38 Lacs u/s 35D, being 1/5th of expenditure of Rs. 66.93 Lacs incurred by the assessee during impugned AY on account of increase in share capital. The same being capital in nature, was disallowed in terms of ratio of Hon'ble Apex Court rendered in Brooke Bond (I) Ltd. Vs CIT [255 ITR 798]. The stated issue attained finality since the assessee did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, was allowable in terms of decision of jurisdictional High Court as well as Hon'ble Apex Court and nonconsideration of the same constitute mistake apparent from record in terms of judgement of Hon'ble Apex Court rendered in ACIT Vs. Saurashtra Kutch Stock Exchange Ltd. [305 ITR 227]. It has also been submitted that there was no bar on appellate authorities to consider the new claim if the same was admissible to the assessee. Per Contra, Ld. DR relied upon the impugned order and submitted that the claim, on merits, was not allowable in terms of judgement of Hon'ble Gujarat High Court rendered in CIT Vs. Ajit Mills Ltd. [210 ITR 658] as well as decision of Hon'ble Bombay High Court rendered in Jaya Hind Industries Ltd. Vs CIT [25 Taxman 36] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... An error apparent on the face of the record means an error which strikes on mere looking and does not need long drawn out process of reasoning on points where there may conceivably be two opinions. Such error should not require any extraneous matter to show its incorrectness. To put it differently, it should be so manifest and clear that no Court would permit it to remain on record. If the view accepted by the Court in the original judgment is one of the possible views, the case cannot be said to be covered by an error apparent on the face of the record. Finally, it was held by Apex Court that non-consideration of a decision of Jurisdictional Court or of the Supreme Court could be termed as "mistake apparent from the record". Respectfully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fresh funds or increase in the capital employed. Therefore, it could not be said that the company acquired a benefit or advantage of enduring nature. The total funds available with the company will remain the same and the issue of bonus shares would not result in expansion of capital base of the company. Therefore, expenditure incurred on issuance of bonus shares would be revenue expenditure. The ratio of this decision has subsequently been followed by Hon'ble Bombay High Court rendered in the cited decision of CIT Vs WMI Cranes Ltd. The factual matrix of Jaya Hind Industries Ltd. Vs CIT [25 Taxman 36] is distinguishable and do not apply to the facts of the present case. Respectfully following the cited decisions, we hold that the expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 244A, concluded that the assessee's case appears to fall under clause (aa) of Section 244A(1) of the act. Accordingly, Ld. AO was directed to verify the factual matrix and allow the interest as per law. Aggrieved, the revenue is in further appeal before us wherein Ld. DR has supported the stand of Ld.AO. 8. Upon due consideration, we are of the opinion that the assessee was entitled for legitimate interest as per law and the directions given by first appellate authority were merely consequential in nature since Ld. AO was directed to verify the assessee's claim qua interest at the threshold of statutory provisions as contained in Section 244A and ascertain the correct amount of interest due to the assessee. No perversity could be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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