High Court: Bonus Share Expenses Are Revenue Expenditure

The High Court Bombay held that expenses related to issuing bonus shares are considered revenue expenditure. The court concluded that certain expenses like staff salaries, stamp duty, transfer fees, and safe custody charges are not directly linked to earning dividends. The judgment favored the assessee, and the appeal was dismissed.

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The High Court Bombay ruled that expenses incurred in connection with issuing bonus shares are considered revenue expenditure. The court also determined that certain expenses like salary paid to staff, stamp duty, transfer fee, and safe custody charges are not directly related to earning dividends. The judgment favored the assessee, and the appeal was dismissed.

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