2018 (1) TMI 938

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....peculation being loss on trading in currency derivates on a recognized exchange. 2) On the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the action of the AO of disallowing an amount of Rs. 7,00,000/- being ROC filing fees for increase in share capital. 3) On the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the action of the AO of confirming the disallowance u/s M-A r.w.r SD of the Act of Rs. 1,48,049/-. There being no dividend income earned by the appellant during the year. 4) On the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the action of the AO of charging interest u/s 234B of Rs. 2,21,364/- & 234C of Rs. 17,664/- of the Act as a....

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.... futures was allowable." 6. The question raised in this appeal reads as under:- "On the facts and circumstances of the case, and in law, the learned Commissioner of Income-tax (Appeals) ought to have held that clause (d) of the proviso to section 43(5) of the Income-tax Act, 1961 ('the Act')/ was applicable to the transactions in foreign currency futures entered into by the appellant and therefore that the loss from these transactions was not in the nature of speculation loss." 7. The Tribunal decided the issue as under:- "considering the relevant provisions of the relevant Acts, discussed here- in-above in the light of the hon'ble Madras High Court and the answers given to frequently asked questions by the Securities and....

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....expenditure incurred by the company in connection with issue of shares is directly related to expansion of capital base of the company, and is a capital expenditure, even though it may incidentally help in the business of the company and in profit making. Therefore, the claim of the assessee was disallowed and the amount of Rs. 7,00,000 was added to the total income. 10. It was contended by learned AR that if the increase in capital base is for the purpose of working capital, then no disallowance can be made in terms of decision of the Co-ordinate Bench in case of Lakshmi Auto Components Ltd., 101 ITD 209 wherein the Tribunal held as under:- 12. I have considered the entire conspectus of the case. In my opinion, the decision of the Apex ....