https://www.taxtmi.com/caselaws?id=6547 The Supreme Court held that the expenditure incurred in connection with the issuance of bonus shares should be treated as revenue expenditure, not capital expenditure. The Court emphasized that issuing bonus shares does not result in an increase in capital employed but rather reallocates existing funds without fresh inflow. Therefore, the expenses related to issuing bonus shares were deemed allowable as revenue expenditure, aligning with the decisions of the Bombay and Calcutta High Courts and differing from the views of the Gujarat and Andhra Pradesh High Courts. The ruling favored the assessee over the Revenue. en-us Mon, 25 Sep 2006 00:00:00 +0530 Wed, 10 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6547 The Supreme Court held that the expenditure incurred in connection with the issuance of bonus shares should be treated as revenue expenditure, not capital expenditure. The Court emphasized that issuing bonus shares does not result in an increase in capital employed but rather reallocates existing funds without fresh inflow. Therefore, the expenses related to issuing bonus shares were deemed allowable as revenue expenditure, aligning with the decisions of the Bombay and Calcutta High Courts and differing from the views of the Gujarat and Andhra Pradesh High Courts. The ruling favored the assessee over the Revenue. Case-Laws Income Tax Mon, 25 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6547