Dismissing the appeal of the Revenue the Court held that held that in terms of directions issued by CLB, assessee-company paid certain amount over and above face value of shares to departing group of shareholders, amount so paid was to be allowed as revenue expenditure.Followed CIT v. Bramha Bazar Hotels Ltd (2015) 235 Taxman 195 (Bom)(HC) (AY. 2007-08)
PCIT v. Bramha Corp Hotels and Resorts Ltd. (2022) 136 taxmann.com 398 (Bom.)(HC) Editorial : SLP filed against order of High Court was to be dismissed as withdrawn. PCIT v. Bramha Corp Hotels and Resorts Ltd. (2022) 286 Taxman 265 (SC)
S. 37(1) : Business expenditure-Buy back of shares-Amount over and above face value of shares to departing group of shareholders-Allowable as revenue expenditure. [S. 263]