2001 (12) TMI 32

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..... undertaking or set up any new industrial unit, and even though it had commenced its business long prior to March 31, 1970, claimed benefit under section 35D of the Income-tax Act, 1961, and sought to claim the expenditure it had incurred in connection with the increase in its paid up capital from Rs. 25 lakhs to Rs. 60.70 lakhs. The aggregate expenditure in that connection was determined by the a .....

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..... chand Chellaram (India) Pvt. Ltd. [1981] 130 ITR 385 wherein it was held that the expenditure incurred for increasing the share capital of a company was revenue expenditure. Subsequently, the Supreme Court, in the case of Brooke Bond India Ltd. v. CIT [1997] 225 ITR 798, held that such expenditure is not revenue expenditure but capital expenditure. The assessee here clearly was not entitled to t .....

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