A Limited company, engaged in financial sector , proceed for further public issue of share and has incurred certain expenditure on Public issue Expenses till 31st March, this amount is around Rs 2.50 crore. However, issue has still to come. The company wants to write off the Public issue expenses as on 31st March and as per their policy these expenditure should be written off by using security premium.
Now my query is:
1. Can the company write off the Public issue expenses as on 31st march if not than what is the right treatment as on 31st march for Public issue expenses? ( as per Comapnies Act/Accounting Standard provisions)
2. Whether such write off will be allowed under the Income Tax Act? If yes, under which section?
CAclubindia
