https://www.taxtmi.com/caselaws?id=767825 ITAT Mumbai ruled that aborted IPO expenditure is deductible under section 37 where it relates to raising fresh equity capital for the assessee company. The tribunal distinguished between capital expenditure for enduring benefit versus expenditure on abandoned projects. While share issue expenses are generally capital in nature and covered under section 35D, aborted share issue expenses qualify for deduction under section 37. Following Bombay HC precedent in Nimbus Communication Ltd., the tribunal allowed deduction for expenses related to the assessee's equity capital increase but excluded expenses pertaining to promoters' offer for sale. The appeal was allowed with directions to delete the addition subject to quantum verification. en-us Mon, 17 Feb 2025 00:00:00 +0530 Wed, 26 Mar 2025 06:50:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767825 ITAT Mumbai ruled that aborted IPO expenditure is deductible under section 37 where it relates to raising fresh equity capital for the assessee company. The tribunal distinguished between capital expenditure for enduring benefit versus expenditure on abandoned projects. While share issue expenses are generally capital in nature and covered under section 35D, aborted share issue expenses qualify for deduction under section 37. Following Bombay HC precedent in Nimbus Communication Ltd., the tribunal allowed deduction for expenses related to the assessee's equity capital increase but excluded expenses pertaining to promoters' offer for sale. The appeal was allowed with directions to delete the addition subject to quantum verification. Case-Laws Income Tax Mon, 17 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767825