1992 (9) TMI 49

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....stance of the assessee, two questions have been referred in this reference for our opinion : " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the expenditure of Rs. 22,530 incurred by way of filing fees for increasing authorised capital was a capital expenditure ? (2) Whether, in view of the facts and law, the Appellate Tr....

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....s authorised capital had been increased by issuance of bonus shares. The other grievance was in connection with the deduction of surtax liability in the computation of business income. The contention of the assessee was that this liability can be deducted as revenue expenditure. Both these requests of the assessee were rejected by the Income-tax Officer. The assessee approached in vain the Appella....

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....y submitted that at least so far as question No. 1 is concerned, there is a sharp division of judicial opinion amongst the different High Courts. It is true that our High Court has taken the view against the assessee on question No. 1 in Ahmedabad Manufacturing and Calico Pvt. Ltd. v. CIT [1986] 162 ITR 800 (Guj), but the Madras High Court in the case of CIT v. Kisenchand Chellaram (India) P. Ltd.....

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....f this court in the case of Bombay Burmah Trading Corporation Ltd. v. CIT [1984] 145 ITR 793. Thus, on the one side, there are views against the assessee as taken by this court, the Bombay High Court and the Delhi High Court, while on the other hand, contrary views have been taken by the Madras High Court, the Kerala High Court and the Andhra Pradesh High Court. In view of the sharp conflict of ju....