9911796707
TMI Blog2021 (10) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... 021 (10) TMI 1209 - KARNATAKA HIGH COURT] wherein as held that going by meaning assigned to the word extension , quite apart from the horizontal expansion in the industrial undertaking, vertical expansion also stands included within the meaning of the term extension of the industrial undertaking - as further stated that the assessee has incurred expenditure for the purpose of acquisition of Subex Americas Inc., and Subex UK Limited and the same was incurred for the purpose of expansion of the business. There being vast difference between expansion and extension , the arguments of the learned counsel for the assessee, placing reliance on the consolidation procedures as per the Accounting Standard [AS-21], cannot be countenanced this s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /W Sri T.N.C.Sridhar, Adv. JUDGMENT This appeal arising against the order of the Income Tax Appellate Tribunal [ITAT] B Bench, Bengaluru dated 16.03.2016 passed in ITA No.223/Bang/2014 relating to the assessment year 2009-10. 2. This appeal was admitted to consider the following substantial questions of law: 1. Whether, in the facts and in the circumstances of the case, the Tribunal is right in law in holding that the share premium collected on the issue of Share Capital by the appellant cannot be taken as part of the Capital Employed for allowing deduction under Section 35D of the IT Act? 2. Whether, in the facts and in the circumstances of the case, the Tribunal is right in law in holding that the cost of acquisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrase being . Thus, expenditure incurred in connection with issue of shares and debentures of the company to public subscription, whether qualify for consideration under Section 35D, it has been held that the rates of expenditure which would go for amortization under Section 35D, particularly with reference to clause[c] specifically mentioned therein and nothing beyond, rejecting the reliance placed on the decision of the Hon ble High Court of Madhya Pradesh in the case of Shree Synthetics Ltd., supra . 22. In Coffeeday Global Ltd., supra, the Co-ordinate Bench of this Court has considered the meaning of the word expansion and extension and it has been held that these words connote different meaning and legislature in its wisdo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustrial undertaking, vertical expansion also stands included within the meaning of the term extension of the industrial undertaking. It was further stated that the assessee has incurred expenditure for the purpose of acquisition of Subex Americas Inc., and Subex UK Limited and the same was incurred for the purpose of expansion of the business. As aforementioned, there being vast difference between expansion and extension , the arguments of the learned counsel for the assessee, placing reliance on the consolidation procedures as per the Accounting Standard [AS-21], cannot be countenanced. Hence, the substantial question of law No.2 is answered against the assessee and in favour of the Revenue. Re. Substantial question of law ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
