TaxTMI 
TaxTMI 
TaxTMI 
2015 (3) TMI 314
X X X X Extracts X X X X
X X X X Extracts X X X X
....,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 proceeded by submitting his case on the additional ground raised by the assessee. It is the say of the Ld. Counsel that the impugned exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....articular 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 carry on its business and hence the expenses incurred for increasing the capital were bound up with the functioning and financing of the business. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 doctrine of precedents into a prison house of bigotry, regardless of varying circumstances and myriad developments. Realism dictates that a judgment has to....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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') - 30000848 TOTAL 56632330938 18991054091 Significant Accounting Policies "N" Notes on Accounts "O" 13. A perusal of the balance sheet shows that the share capital has been increased from 477.77 crores to 722.35 crores and the share application money has been increased from 172.12 crores to 1170 crores. The inventories which were Nil during the previo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rovided 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 of buy-back" means the offer of such buy- back made in pursuance of the resolution of the Board referred to in the first proviso; (c) the buy-back is or less than twenty-five per cent of the total paid-up capital and free reserves of the company: Provided that the buy-back of equity shares in any financial year shall not exceed twenty-five per cent of its total paid-up equity capital in that financial year; (d) the ratio of the debt owed by the company is not more than twice the capital and its free reserves after such buy-back: Provided that the Central Government may prescribe a higher ratio of the debt than that specified under this clau....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 completion of buy-back. (8) Where a company completes a buy-back of its shares or other specified securities under this section, it shall not make further issue of the same kind of shares (including allotment of further shares under clause (a) of sub-section (1) of section 81) or other specified securities within a period of six months except by way of bonus issue or in the discharge of subsisting obligations such as conversion of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into equity shares. (9) Where a company buy-back its securities under this section, it shall maintain a register of the securities so bought, the consideration paid for the ....