TMI Blog1987 (3) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Ravee A. Sood during the previous year under the agreement dated April 3, 1967; and (c) Rs. 2,44,888 incurred in raising further share capital of Rs. 22,50,000 ? " The assessee is a company and the proceedings relate to its assessment for the assessment year 1968-69. During the previous year, the assessee obtained on lease a portion of Tiecicon House, 18, Haines Road, Bombay. As per the lease agreement, which is dated April 3, 1967, the lease is for a period of ten years with effect from July 1, 1966, with provision for renewal for two consecutive periods of ten years each on the same terms. The assessee incurred an expenditure of Rs. 10,453 by way of stamp, etc., at the time of executing the lease agreement. The premises were t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears and the items of expenditure involved were stamp duty and brokerage. In the case of CIT v. Bombay Cycle and Motor Agency, Ltd. [1979] 118 ITR 42 (Bom), there were two premises and the duration of lease was for ten and five years. The items of expenditure involved were lawyer's fees and brokerage paid. In the case of CIT v. Burroughs Wellcome Co. (India) (Pvt.) Ltd. [1982] 133 ITR 37 (Bom), the period of lease was not mentioned and the expenditure involved was brokerage and commission. In the case of CIT v. Cinceita Private Ltd. [1932] 137 ITR 652 (Bom), the period of lease was 20 years with right of renewal and the expenditure involved was registration fee and stamp duty. In all these cases, he pointed out, the court took the view th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment of Rs. 8,396 to the estate agents, M/s. Ravee A. Sood, is in terms of the lease agreement entered into between the assessee and the lessor. Clause 4(vii) of the agreement reads as under : " 4. (vii) The lessees shall, during their occupation of the demised premises, pay to M/s. Ravee A. Sood, Estate Agents, monthly a sum of Rs. 691.60 (calculated at 8% on the monthly rent hereby reserved) by way of commission on or before the tenth of each succeeding English calendar month. Provided that the lessee shall not be liable to pay the said commission for the period during which the rent shall remain completely suspended under sub-clause (ii) hereof and in case rent is proportionately reduced under the said sub-clause, the lessees shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in connection with the issue of bonus shares is entirely different from raising of fresh share capital. In the case of issue of bonus shares, the company's capital base does not get augmented. The company only retains the available profits in the form of bonus shares, whereas in the case of raising further fresh share capital, the capital base is augmented. In our opinion, this court's decision in Bombay Burmah Trading Corporation Ltd. v. CIT [1984] 145 ITR 793, does not help the assessee's case at all. In fact, while dealing with the Madras High Court decision in the case of Addl. CIT v. Brakes India Ltd. [1979] 118 ITR 820, this court has taken due notice of the manner in which the Supreme Court appreciated the difference between rais ..... X X X X Extracts X X X X X X X X Extracts X X X X
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