17 August 2009
Dear All A Limited company has allocated part of its IPO expenses to Promoters and the promoters claimed the same as expenses on transfer, while computing Capital gain in their hand. The expenses allocated are pertaining to the issue of promoters holding through the IPO Issue. Query Whether a limited company can allocate the IPO-Share Issue expenses to its promoters? Whether the promoters can claim Capital Gain Exemption by treating the same as expenses on transfer? Can anybody refer some Case Laws in this regard?
CAclubindia
