2012 (9) TMI 998

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..... in issuance of shares and debentures. A part of the debentures were convertible debentures. A part of the debentures were convertible debentures. The assessee claimed deduction of expenses incurred for shares and debentures. The Assessing officer holding that the expenses towards shares and convertible debentures cannot be deducted because the amount spent towards shares and convertible debentures .....

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..... ge fixed by the RBI and rest of the amount is to be utilized for public lending. Therefore, for a financial institution the share capital also would assume the character of working capital. In that view any amount utilized by the bank towards issuance of share capital is a deductible expenditure. In the light of the above observations the order of the Appellate court is set aside. The matter is re .....

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