2026 (1) TMI 127

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....arkash, Sr.DR ORDER PER MANISH AGARWAL, AM : The present appeal is filed by assessee against the order dated 17.12.2024 by Ld. Commissioner of Income Tax (A)/ADDL/JCIT(A)- 1, Nashik ["Ld.CIT(A)"] in Appeal No. NFAC/2018-19/10019921 passed u/s 250 of the Income Tax Act, 1961 ["the Act"] against the intimation order dated 25.10.2020 passed u/s 143(1) of the Act pertaining to Assessment Year....

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....amount of Rs. 38,02,910/- on account of fees for stamp duty paid for increase in authorized share capital, despite the fact that the same has been booked in retained earnings. 2. That learned CIT(A) has erred both on facts and in law in disallowing Rs. 38,02,910 without appreciating the fact that the amount has not been debited to Profit and Loss Account and hence, has not been claimed as....

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....ce Sheet under the head "retained earnings" the same is appearing as negative figure and no expenditure on this count was claimed in the P&L Account therefore, the same was wrongly disallowed by the CPC. Ld.AR submits that Auditor in Point No.21A at Serial No.1 in Form 3CD appended with Tax Audit Report under Form 3CB has clearly observed as under:- "paid towards increase in authorized sh....

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....ns of both the parties and perused the material available on record. From the perusal of the Note No. 15 to the Balance Sheet it is seen that under the title "other equity", the assessee has shown this amount under the head "retained earnings ITA as share issue expenses". The relevant extracts of the Balance Sheet are available at page 4 of the Paper Book filed by the assessee. It is further seen ....