COMMISSIONER OF INCOME TAX Vs. SAKTHI FINANCE LIMITED

JUDGEMENT

(1.) THE question referred relates to the assessment year 1985-86.

(2.) THE assessee, even though it had not extended any industrial undertaking or set up any new industrial unit, and even though it had commenced its business long prior to March 31, 1970, claimed benefit under Section 35D of the Income-tax Act, 1961, and sought to claim the expenditure it had incurred in connection with the increase in its paid up capital from Rs. 25 lakhs to Rs. 60.70 lakhs. THE aggregate expenditure in that connection was determined by the assessee at Rs. 11,22,289. It sought to spread the same over a period of ten years and also sought to write off 1/10th of that sum and invoked Section 35D for the relevant previous year. Such a claim was negatived by the Assessing Officer, as also by the appellate authority but was allowed by the Tribunal.