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?

[Rama Krishana]

No, you are not entitled to calim the deduction under section 35D for expenses incurred on increase in authorized capital by an NBFC - Decision of Madaras High Court may be referred to - https://www.taxtmi.com/caselaws?id=33217

[Rama Krishana]

Further you may visit to following case law - https://www.taxtmi.com/caselaws?id=12655

AI Summary

Deductibility of capital-raising expenses denied for authorised capital increases by NBFCs under tax deduction rules. Expenses incurred by a non-banking financial company for increasing authorised capital are reported as not allowable as a deduction under section 35D, with supporting references to a Madras High Court decision and an additional cited case provided in the source discussion.