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TMI Blog1997 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... NT) of 1983. - - - Dated:- 27-2-1997 - G. B. PATTANAIK. and S. C. AGRAWAL. JUDGMENT In this appeal, by certificate granted by the High Court under section 261 of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), the following question referred to the Calcutta High Court (see [1983] 140 ITR 272) by the Income-tax Tribunal (hereinafter referred to as " the Tribunal ") was answered in favour of the Revenue and against the assessee : " Whether, on the facts and in the circumstances of the case, the of Rs. 13,99,305 being expenses incurred in connection with the issue of fresh lot of shares in 1967 ? " The question relates to the assessment year 1969-70 and the relevant accounting year ended on June 30, 1968. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1988] 172 ITR 257 and Alembic Chemical Works Co. Ltd. v. CIT [1989] 177 ITR 377. Learned counsel has also invited our attention to the decisions of the High Courts of Andhra Pradesh, Kerala and Karnataka which have taken the same view as that taken by the Madras High Court in CIT v. Kisenchand Chellaram (India) P. Ltd. [1981] 130 ITR 385. [See : Warner Hindustan Ltd. v. CIT [1988] 171 ITR 224 (AP) ; Hindustan Machine Tools Ltd. (No. 3) v. CIT [1989] 175 ITR 220 (Kar) and Federal Bank Ltd. v. CIT [1989] 180 ITR 241 (Ker)]. We find that this matter has come up for consideration before this court in Punjab State Industrial Development Corporation Ltd. v. CIT [1997] 225 ITR 792 (Tax Reference No. 1 of 1990, decided on December 4, 1996). In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view as compared to the view based on the decision of the Madras High Court in Kisenchand Chellaram's case [1981] 130 ITR 385. " This decision thus covers the question that falls for consideration in this appeal. Dr. Pal has, however, submitted that this decision does not cover a case, like the present case, where the object of enhancement of the capital was to have more working funds for the assessee to carry on its business and to earn more profit and that in such a case the expenditure that is incurred in connection with issuing of shares to increase the capital has to be treated as revenue expenditure. In this connection, Dr. Pal has invited our attention to the submissions that were urged by learned counsel for the assessee before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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