1985 (9) TMI 72

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....e loan and claimed loss of Rs. 91,366 on its remittance because of the devaluation of the Indian currency twice, once in the year 1966 and again in the year 1971. Both these items of Rs. 76,666 and Rs. 14,700 were disallowed by the Tribunal holding it to be an expenditure of capital nature. The assessee increased its share capital from Rs. 45 lakhs to Rs. crore -and for doing so paid a fee of Rs. 8,250 under the Companies Act. This expenditure was claimed as business expenditure by the assessee. Its claim was turned down up to the Tribunal stage. However, on application by the assessee, the following three questions were referred to this court with the statement of the case "1. Whether, on the facts and in the circumstances of the cas....

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....was that the loan of Rs. 40 lakhs had been taken to be utilised as working capital. As it was held to be a regular expenditure, the amount of Rs. 84,633 spent towards stamp duty, registration fee, lawyer's fee, etc., was also held to be a business expense. Similarly, in Kishan Chand's case [1981] 130 ITR 385 (Mad), the assessee had taken on lease three buildings and the money spent on them for their improvements was claimed and allowed as revenue expenditure. As the assessee had not acquired any capital assets and the buildings were taken on lease for business purposes, the expenditure was rightly allowed as business expenditure. In the present case, the expenditure has been incurred on strengthening the capital structure of the company. An....