Reading the proviso to regulation 52 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, it is manifest that any excess over the 6 per cent. initial issue expense shall be borne by the asset management company, therefore expenditure in excess of 6 Per cent. of initial issue expenses of asset management company was held to be deductible. Expenditure relating to Information Technology infrastructure was held to be allowable . ( AY. 2006 -07)
CIT v. Ing Investment Management (India) P. Ltd. (2018) 401 ITR 405 (Bom) (HC)
S. 37(1):Business expenditure — Expenditure in excess of 6 Per cent. of initial issue expenses of asset management company was held to be deductible. Expenditure relating to Information Technology Infrastructure was also held to be allowable . [Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 R. 52 ]