9911796707
TMI Blog2003 (7) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that the assessee was not entitled to deduction under section 35D in respect of expenses as public issue – Held that the expenses incurred on issue of public subscription, of shares or of debentures of the company, any payment made against commission, brokerage and charges for drafting, typing, printing and advertisement of the prospectus, which are clearly referred to in sub-clause (iv) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961, and consequently holding that the assessee was not entitled to deduction under section 350 in respect of expenses as public issue." The relevant assessment years are 1987-88 and 1988-89. During the course of assessment, the Assessing Officer noticed that the assessee had raised its capital by way of public issue and in the process had incurred Rs. 6,30,177. The amount of public issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the public issue to raise the capital for extending/expansion of its business. Mr. Mathur, learned counsel for the applicant, submits that the expenditure in question is covered by sub-clause (iv) of clause (c) of sub-section (2) of section 350. He further submits that there is no difference between "extension" and "expansion" and the Bombay High Court has read "extension" as "expansion" in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 350 can be allowed only on those items referred to in sub-clause (iv) after considering the break up of the amount in question. The provision of section 350(2)(c)(iv) reads as under: "In connection with the issue, for public subscription, of shares in or debentures of the company, being underwriting commission, brokerage and charges for drafting, typing, printing and advertisement of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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