TaxTMI 
TaxTMI 
2005 (12) TMI 235
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.... which included share expenses of Rs. 5,38,027 relating to share issue expenses were debited under different heads as under: (Rs) (Rs) (i) Misc. expenses as 1,80,705 discussed above (ii) In legal and professional expenses: (a) To resources management 15,000 group, Bhilwara Spin FCD issue legal discussion (b) Financial consultancy 40,000 to Dogra & Associates (c) For guideline project 1,41,222 appraisal fee certificate and appraisal fee to SBBJ.&....
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....le Rajasthan High Court in the case of CIT vs. Aditya Mills Ltd. (1990) 86 CTR (Raj) 60 : (1990) 181 ITR 195 (Raj), the decision of the Hon'ble Supreme Court in the case of Brooke Bond India Ltd. vs. CIT (1997) 140 CTR (SC) 598 : (1997) 225 ITR 798 (SC). It has been submitted in the light of Brooke Bond India's case that the Hon'ble apex Court has placed reliance on its own decision in the case of the Punjab State Industrial Development Corporation Ltd. vs. CIT (1997) 140 CTR (SC) 594 : (1997) 225 ITR 792 (SC) and other decisions of various High Courts and thereby held that expenditure incurred by a company in connection with issue of shares with a view to increase its share capital, is directly related to the expansion of the capital base ....
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.... of expenses relating to publishing issue and expenses relating to issue of debenture and working capital loan. The learned Authorised Representative has also placed reliance on the findings of the learned CIT(A) that an expenditure of Rs. 3,57,322 relates to the working capital and is not connected to share issue expenditure and is, therefore, allowable as revenue expenditure. 5. We have carefully considered the rival submissions, in the light of the available evidence on record. From the assessment order, the learned CIT(A)'s order and page No. 75 of the paper book of the assessee as well as from written submission, we have come to the conclusion that in the light of the above mentioned clear-cut legal position on the subject, a sum of....
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....hich were incurred in the later half year, were treated as capital expenditure and after allowing depreciation for half year, the disallowance of Rs. 16,40,986 was made. Thus, the total addition of Rs. 1,53,50,532 was made. The AO was of the opinion that the details of machinery and plant purchased by the assessee which consisted of draw frame, compressor fan blades, star yarn evenneors tester by holding this as was an addition to the plant and machinery. The alternate claim of the assessee that each machinery item so purchased was below Rs. 5,000 and each item (was not) accepted by the AO on the reasoning that such parts of machinery did not function independently but was a part of system of whole machinery. On appeal the learned CIT(A) ca....
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....essee of 100 per cent depreciation has to be allowed in this case because the impugned addition incurred in replacement of cards/blow room machinery/combing machinery of textile mills is a revenue expenditure because all plant and machinery put together amount to a single unit. We are convinced that these items/units cannot work independently, but can work only as a part of the spinning unit. The decision relied on by learned Authorised Representative of the Hon'ble Madras High Court is based on exactly identical facts as that of the case under consideration. In that case also the expenditure was incurred on almost identical parts/machinery. Therefore, the decision taken in the case of Madras High Court is applicable to the facts of this ca....