Expenses - increase in authorised capital - section 35D

[Anup Kumar Grover]

Whether expenses incurred on increase in authorised capital by an NBFC, allowable under section 35D or not?

AI Summary

NBFCs Cannot Claim Deduction for Expenses on Increasing Authorized Capital Under Section 35D, Per Court Ruling. A query was raised regarding whether a Non-Banking Financial Company (NBFC) can claim a deduction under section 35D of the Income Tax Act for expenses incurred on increasing its authorized capital. The response provided by a participant indicated that such expenses are not eligible for deduction under section 35D, referencing a decision by the Madras High Court. The discussion included links to relevant case laws for further reference.