2001 (10) TMI 7 - SC - Income Tax

Share capital increased by assessee on direction by RBI to reduce non-residential holding - Whether, increase of capital pursuant to direction of Reserve Bank to reduce non-residential holding to 40 per cent is capital expenditure - Held, yes

Summary

The Supreme Court allowed the appeal, setting aside the order under appeal. The expenditure incurred for the public issue of shares was deemed as capital expenditure. The case was found to be covered by a previous judgment.