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TMI Blog1992 (9) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ncometax Act, 1961, the Income-tax Appellate Tribunal has referred the following question of law for our opinion : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the annual listing fee paid to the stock exchange is allowable revenue expenditure of the assesseecompany? " In order to answer the aforesaid question, a few relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that no enduring benefit, therefore, arises to the company by payment of annual listing fees. It also took the view that the benefit derived by the company does not augment its capital structure, and therefore, such expenditure cannot be treated as a capital expenditure. In the case of CIT v. New India Industries Ltd. (I.T.R. No. 199 of 1978 - [1993] 201 ITR 208 ) an identical question was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rposes of the business and, therefore, admissible as business expenditure under section 37(1). In view of the above, the instructions issued under Board's earlier letter referred to above may be treated as withdrawn". In view of the aforesaid circular, it is obvious that the listing fees paid to the stock exchange shall have to be allowed as a revenue expenditure and, in view of the said circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the public limited company is concerned. The business of the company also carries better prestige and better status when its shares are listed in the stock exchange. Such listing adds several advantages to the business carried on by the company particularly, in the matter of confidence of customers and loyalty of employees which generate value. In that view of the matter, in our opinion, the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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