2008 (12) TMI 781

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....nsel with BN. D. Damodar i/b Kanga & Co., for the respondent. JUDGEMENT Heard the learned counsel for the appellant and the learned counsel for the respondent. The appellant has raised following questions of law- (i) Whether the facts and circumstances of the case and in law the ITAT was justified in upholding the order of CIT (A) in deleting the disallowance of Rs. 20,15,85,238/- m....

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....ease its share capital is disallowable? 2. Perused the judgment and order of the Tribunal dated 3rd May, 2007. The Tribunal gave its finding as under- "2.4 The intial expenses directly incurred for raising capital are in nature and cannot be allowed by way of deduction as revenue expenditure. But the proposition would apply in a case where the expenditure incurred and the capital raise....

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....s of conducting its business, there was no bar on the assessee to incur expenses, otherwise than the expenses incurred were not in dispute. The expenses incurred were the assessee's own expenditure and it was a part and parcel of the profit-making activity of the assessee. The expenditure had a direct nexus with the assessee's own business of asset management. There was no valid basis to treat the....