Supreme Court of India
Brooke Bond India Ltd. v. Commissioner of Income Tax, West Bengal-iii.
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
1 Supreme Court bench has cited this judgment.
What the Court ordered
We are of the opinion that the fee paid to the Registrar for expansion of the capital base of the company was directly related to the capital incidentally that would certainly help in the business of the company and may also help in profit making, C it still retains the character of a capital expenditure since the expenditure was directly related to the expansion of the capital base of the company.
Judgment, page 4
From the headnote
Income Tax Act, 1961-Section 37(1)--Whether expenditure incu"ed for issuing shares for expanding capital base can be treated as revenue expen diture and therefore allowed as a deductible expense-Held : Expenditure incumd for issuing shares to expand capital base with the object of having more working funds and eaming more profit is capital expenditure and there fore not a deductive expense. The assessee, a public limited company, claimed deduction for the expenditure incurred by it for issuing shares with a view to increase its share capital for the assessment year 1969-70. The deduction
Where later benches applied it
Of those, 1 referred to
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