Held that on conversion of debentures in to equity the assessee deriving enduring benefit therefore the expenditure incurred on documents and stamp charges is capital expenditure. As regards the alternative contention of allowability of claim u/s 35D is concerned, the said section does not contemplate allowance of expenditure for conversion of debentures in to equity share capital hence the alternative claim of deduction u/s 35D of the Act is also not allowable. (AY. 2014-15)
Sacmi Engineering India (P) Ltd. v. Dy. CIT (2021) 207 DTR 293/(2022) 215 TTJ 1029 (Ahd.)(Trib.)
S. 37(1) : Business expenditure-Capital or revenue-Conversion of debentures in to equity shares-Documents and stamp charges on conversion-Capital expenditure-Provision of section 35D is not applicable allowance of expenditure incurred after commencement of business. [S. 35D]