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TMI Blog1981 (2) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... f the I.T. Act of 1961, stated this case and referred the following question for our opinion: " Whether, on the facts and in the circumstances of the case, the expenditure of Rs. 12,620 incurred by the assessee-company by way of legal fees for making alterations in its articles of association in order to bring them into accord with the changes brought about in the law relating to companies, is de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year, the fees were claimed as revenue expenditure. The ITO treated the amount as capital investment and disallowed deduction. The AAC upheld the rejection while the Tribunal in second appeal by the assessee accepted its contention and allowed the claim by treating it as revenue expenditure. Aggrieved by the reversal in the second appeal, the revenue has raised the present dispute. A Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal and revenue expenditure tried to challenge the conclusion of the Tribunal. His contention has obviously overlooked the legal position that a private company which has got transformed into public company by the amended statute could not function any longer without bringing its articles in accord with that of a public company. The amendment thus became necessary to permit the assessee-company to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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