https://www.taxtmi.com/caselaws?id=23771 The High Court of BOMBAY ruled in favor of the assessee, a pharmaceutical manufacturer, allowing the deduction of share issue expenses as revenue expenditure for the assessment year 1970-71. Despite the expenses being related to issuing fresh equity capital, the Court agreed with the Income-tax Appellate Tribunal's decision that there was a direct nexus between the expenditure and income earning. The Court emphasized the businessman's viewpoint and business necessity in determining the nature of expenditure, ultimately supporting the assessee's claim and rejecting the Revenue's argument against allowing capital expenditure as a deduction under section 37 of the Income-tax Act, 1961. en-us Thu, 28 Sep 1989 00:00:00 +0530 Thu, 14 Jan 2010 11:35:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23771 The High Court of BOMBAY ruled in favor of the assessee, a pharmaceutical manufacturer, allowing the deduction of share issue expenses as revenue expenditure for the assessment year 1970-71. Despite the expenses being related to issuing fresh equity capital, the Court agreed with the Income-tax Appellate Tribunal's decision that there was a direct nexus between the expenditure and income earning. The Court emphasized the businessman's viewpoint and business necessity in determining the nature of expenditure, ultimately supporting the assessee's claim and rejecting the Revenue's argument against allowing capital expenditure as a deduction under section 37 of the Income-tax Act, 1961. Case-Laws Income Tax Thu, 28 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23771