Dismissing the appeal the Court held that the expenditure incurred for augmenting the capital of a company by public issue has an enduring effect and therefore, has to be treated as capital expenditure. (AY.1994-95)
Tatia Sky Line and Health Farms Ltd. v. ACIT (2021) 432 ITR 123 / 279 Taxman 18 (Mad.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Public issue-Capital expenditure.