Roc fees paid for increasing the authorised capital of the c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2012 Whether any ROC fees paid for increasing the authorized capital of the company is an allowable expenditure u/s 37(1) of the Income Tax Act or not.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 August 2012 SC has held in the case of Punjab State Industrial Development Corporation Limted that fees paid to ROC Expansion of authorised capital is directly related to capital expenditure and is not allowed as a revenue expenditure.

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Guest

Guest (Expert)

08 August 2012 Fees paid for increase of autho capital is disallowed. IT is not revenue expenditure.

It is capital expenditure and hence disallowed.

35D is about pre-incorporporation exp and specifies a list of expense which does not include "increase of authorised share capital"

Increase in autho capital exp are not allowed under section 35D also for 5 years (1/5th)

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