1993 (8) TMI 19 - HC - Income Tax

Bonus Shares Business Expenditure Capital Expenditure Capital Or Revenue Expenditure Income Tax Act Provision For Gratuity

Summary

The High Court of Gujarat ruled on two questions referred by the Income-tax Appellate Tribunal:
1. Expenses for issuing bonus shares are not deductible as revenue expenditure.
2. Provision for gratuity from gross profits is not allowed unless specific conditions are met.
Both questions were answered in favor of the Revenue and against the assessee.