https://www.taxtmi.com/caselaws?id=18301 The court held that expenditure incurred by a finance company for raising share capital is classified as capital expenditure, not revenue expenditure, as obtaining capital through share issuance results in an enduring benefit for the business. The court also determined that cash raised through share capital is not considered stock-in-trade for leasing and financing companies. Additionally, the court emphasized that any accretion to capital through share issuance benefits the business as a whole, regardless of the specific line of activity, and dismissed the argument to limit the disallowance of expenditure to the amount invested in fixed assets. en-us Mon, 25 Sep 1995 00:00:00 +0530 Thu, 23 Feb 2012 16:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18301 The court held that expenditure incurred by a finance company for raising share capital is classified as capital expenditure, not revenue expenditure, as obtaining capital through share issuance results in an enduring benefit for the business. The court also determined that cash raised through share capital is not considered stock-in-trade for leasing and financing companies. Additionally, the court emphasized that any accretion to capital through share issuance benefits the business as a whole, regardless of the specific line of activity, and dismissed the argument to limit the disallowance of expenditure to the amount invested in fixed assets. Case-Laws Income Tax Mon, 25 Sep 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18301