Amir
(Learner)
(4016 Points)
Replied 25 March 2010
Dear Hireshire,
Well I must tell u, this question only appears simple.....!
The nature of expenses will decide the treatment - eg-
1) Expenses which are covered u/s 35D can be claimed in that section in 5 installments
in connection with the issue, for public subscripttion, of shares in or debentures of the company, being underwriting commission, brokerage and charges for drafting, typing, printing and advertisement of the prospectus;
2) Expenses that donot fall in above category like "ROC Fee" for "Enhancement of Authorised Capital, etc" will be dissallowed being Capital in Nature.
hireshire
(n/a)
(185 Points)
Replied 26 March 2010
Well did some research and found that issue expenses of debentures are always allowed as deduction as per some case laws.
CAclubindia
