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TMI Blog2018 (10) TMI 1671X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that the expenditure incurred by a company in connection with issue of shares with a view to increase its share capital, is directly related to the expansion of the capital base of the company, and is capital expenditure, even though it may incidentally help in the business of the company and in the profit-making. CIT(A) has rightly held that the ROC fees paid for increase in authorized share capital of a company is a capital expenditure in nature and hence cannot be allowed as an allowable deduction. Thus, we find no reason to interfere with the order passed by the CIT(A) on this issue and accordingly, the ground raised by the assessee stands dismissed. - I.T.A.No.406/Chny/2018 - - - Dated:- 15-10-2018 - Shri Abraham P. Geo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the assessee as well as facts of the case, the ld. CIT(A) confirmed the disallowance and dismissed the appeal of the assessee. 4. On being aggrieved, the assessee is in appeal before the Tribunal. By relying on the decision in the case of CIT v. L.G. Electronic (India) Ltd. 282 ITR 545 (Delhi), the ld. Counsel for the assessee has submitted that the expenditure incurred during the course of setting up of business is an allowable deduction and prayed for allowing the same. 5. Per contra, the ld. DR vehemently argued that no capital expenditure incurred during the course of setting up of business was allowed and thus the case law relied on by the ld. Counsel for the assessee is distinguishable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the assessee was revenue in nature incurred during the course of setting up of business was allowed and the Hon ble Delhi High Court has affirmed the same. 6.3 As has been held by the Hon ble Supreme Court referred to above, the ld. CIT(A) has rightly held that the ROC fees paid for increase in authorized share capital of a company is a capital expenditure in nature and hence cannot be allowed as an allowable deduction. Thus, we find no reason to interfere with the order passed by the ld. CIT(A) on this issue and accordingly, the ground raised by the assessee stands dismissed. 7. In the result, the appeal filed by the assessee is dismissed. Order pronounced on the 15th October, 2018 at Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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