Disallowance of FEES PAID TO ROC

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CA.CS.V.Viswanathan

CA.CS.V.Viswanathan (Querist)
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31 October 2009 Respected Experts,

There is a Disallowance when fees is paid to ROC For Increase in Authorized Capital
my query is whether this Capital expenditure be treated as Differed Revenue expenditure and be amortized in 5 Years..(The Increase in capital was done after 2 Years of incorporation) ?
is there any case law or provision in the Act .
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Ankur Garg

Ankur Garg (Expert)
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31 October 2009 Fees paid to the RoC for increase in authorised capital is a capital expenditure not deductible u/s 37(1) but deductible u/s 35D.

Citation:-

1. Punjab State Industrial Development Corporation Ltd 225 ITR 792 (Sc).

2. Mohan Meakin Breweries Ltd 117 ITR 501 (HP)- says that Fees paid for increase of authorised capital is an inadmissable expenses.