AUTOLITE INDIA LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application under s. 256(1) of the IT Act, 1961, the Tribunal has referred the following question for the opinion of this Court :

(2.) THE relevant asst. yrs. are 1987-88 and 1988-89. During the course of assessment, the AO noticed that the assessee had raised its capital by way of public issue and in the process had incurred Rs. 6,30,177. THE amount of public issue was to be used for expansion of business. He claimed it as a revenue expenditure, but the claim was rejected by the AO holding that the expenditure is a capital expenditure.

(3.) MR. Singhi, learned counsel for the Revenue, submits that as the break-up has not been given of the amount of Rs. 6,30,177, therefore, the expenditure incurred only on the items referred to in sub-cl. (iv) is eligible for the benefit of s. 35D(2)(c) of the Act. Therefore, the Tribunal be directed to get the break-up of the expenditure from the assessee as the benefit of sub-cl. (iv) of cl. (c) of sub-s. (2) of s. 35D can be allowed only on those items referred to in sub-cl. (iv) after considering the break-up of the amount in question.