TaxTMI 
TaxTMI 
2015 (3) TMI 314
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.... 3. Filing fees of Form 5 for increase in share capital 33,94,000/- 4. Miscellaneous Expenses 4,848/- Total 3,50,00,858/- 4. A perusal of the assessment shows that these expenses were debited by the assessee under the head Miscellaneous expenditure in its profit & Loss A/c and on the same the assessee has claimed 1/5th deduction u/s. 35D of the Act. Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. Vs CIT 229 ITR 383 has held that " the Tribunal has the discretion to allow or not allow a new ground to be raised. But where the Tribunal is only required to consider the question of law arising from facts which are on record in the assessment proceedings, there is no reason why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctly assess the tax liability of an assessee." 5. As mentioned above, the issue raised vide additional ground requires no verification of new facts hence respectfully following the findings of the Hon'ble Supreme Court (supra), the assessee was allowed to raise the additional plea. 6. The Ld. Counsel for the assessee proceed....
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....e of business and the objects for which the expenditure is incurred." 10. The Hon'ble Supreme Court further observed as under: "Whether a particular expenditure is revenue expenditure incurred for the purpose of business must be determined on a consideration of all the facts and circumstances, and by the application of principles of commercial trading. The question must be viewed in the larger context of business necessity or expediency. If the outgoing or expenditure is so related to the carrying on or conduct of the business, that it may be regarded as an integral part of the profit-earning process and not for acquisition of an asset or a right of a permanent character, the possession of which is a condition of the carrying on of the business, the expenditure may be regarded as revenue expenditure." 11. It would be pertinent to mention here that the Hon'ble Madras High Court in the case of Kisenchand Chellaram (India) (P) Ltd130 ITR 385 was dealing with a case in which the assessee had paid fees for raising the capital of a company to the Registrar of Companies and had claimed the amount paid as a revenue expenditure. It was held that without capital a company cannot car....
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.... was undertaken by the assessee for the purpose of meeting the need for more working funds for the assessee to carry on its business. 10. From this it can be concluded that if the expansion of capital is in order to meet the need for more working funds, in that eventuality the expenditure could partake the nature of revenue expenditure. De hors examination in this regard, it is not possible to apply the ratio. 11. Each case depends on its own facts, and a close similarity between one case and another is not enough because even a single significant detail may alter the entire aspect. In deciding such cases, one should avoid temptation as said by Cordozo by matching the colour of one case against the colour of another. I am reminded of Heraclitus who said "you never go down the same river twice". What the great philosopher said about time and flux can relate to law as well. It is trite that a ruling of superior court is binding law. It is not of scriptural sanctity but is of ratiowise luminosity within the edifice of facts where the judicial lamp plays the legal flame. Beyond those walls and de hors the milieu we cannot impart eternal vernal value to the decision, exalting the ....
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....ets, Loans and Advances Current Assets. Inventories (Refer Note 2 of Schedule 'O") "F" 24724820391 Cash and Bank Balances "G" 46494207 27410749 Loans and Advances "H" 30364729537 3230356221 55136044135 3257766970 Less: Current Liabilities and Provisions "I" Current Liabilities 202204324 60640929 Provisions 38596153 18965281 240800477 79606210 Net Current Assets. 54895243658 3178160760 Miscellaneous Expenditure (to the extent not written Off or adjusted) (Refer Note 7 Schedule 'O') ....
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....ferred to as "buy-back") out of- (i) its free reserves; or (ii) the securities premium account; or (iii) the proceeds of any shares or other specified securities: Provided that no buy-back of any kind of shares or other specified securities shall be made out of the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities. (2) No company shall purchase its own shares or other specified securities under sub-section (1), unless- (a) the buy-back is authorised by its articles; (b) a special resolution has been passed in general meeting of the company authorising the buy-back: Provided that nothing contained in this clause shall apply in any case where- (A) the buy-back is or less than ten per cent. of the total paid- up equity capital and free reserves of the company; and (B) such buy-back has been authorised by the Board by means of a resolution passed at its meeting: Provided further that no offer of buy-back shall be made within a period of three hundred and sixty-five days recokned from the date of the preceding offer of buy-back, if any. Explanation .-For the purposes of this clause, the expression "offer o....
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.... (6) Where a company has passed a special resolution under clause (b) of sub-section (2) or the Board has passed a resolution under the first proviso to clause (b) of that sub-section to buy-back its own shares or other securities under this section, it shall, before making such buy-back, file with the Registrar and the Securities and Exchange Board of India a declaration of solvency in the form as may be prescribed and verified by an affidavit to the effect that the Board has made a full inquiry into the affairs of the company as a result of which they have formed an opinion that it is capable of meeting its liabilities and will not be rendered insolvent within a period of one year of the date of declaration adopted by the Board, and signed by at least two directors of the company, one of whom shall be the managing director, if any: Provided that no declaration of solvency shall be filed with the Securities and Exchange Board of India by a company whose shares are not listed on any recognised stock exchange. (7) Where a company buy-back its own securities, it shall extinguish and physically destroy the securities so bought-back within seven days of the last date of complet....