COMMISSIONER OF INCOME TAX Vs. MULTI METALS LIMITED

JUDGEMENT

(1.) THE following two questions have been referred by the Income-tax Appellate Tribunal under Section 256(1) of the Income-tax Act, 1961, for the opinion of the High Court at the instance of the Commissioner of Income-tax, Jaipur :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was right in holding that the fees paid to the Registrar of Com panies for raising the authorised capital of the assessee-company was covered by Sub-clause (2)(c)(iv) of Section 35D of the Income-tax Act, 1961 ?"

(3.) LEARNED counsel for the assessee urged for making reference of the aforesaid question to a larger Bench. We do not, however, consider it necessary to do so. The Rajasthan High Court decision in the case of Aditya Mills [1990] 181 ITR 195 is clear and explicit on the point and we are bound by the same. We, consequently, answer the first question in the negative by saying that the fee paid to the Registrar of Companies for raising the authorised capital was not allowable as revenue expenditure,