M/S Ballarpur Induis Tries Ltd. ... vs The Commissioner Of Income Tax ...
2017 Latest Caselaw 6961 Bom

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                 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                         NAGPUR BENCH, NAGPUR

                       INCOME TAX APPEAL NO. 99 OF 2004

            M/s. Ballarpur Industries Ltd.,
            Thapar House, 124, Janpath,
            New Delhi                                              ......               APPELLANT

                                      ...VERSUS...

         The Commissioner of Income Tax,
         Vidarbha, Aaykar Bhavan, 
         Civil Lines, Nagpur............                                        RESPONDENT
 -------------------------------------------------------------------------------------------
 Shri K.P.Dewani, counsel for appellant.
 Shri N.S.Bhattad with Shri Bhoot, counsel for Respondent 
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                          CORAM: R. K. DESHPANDE, AND
                                        MANISH PITALE, JJ.

th DATE : 8 SEPTEMBER, 2017 .

COMMON JUDGMENT (P.C.)

1] This appeal was admitted on 02.07.2007 and the

following substantial questions of law were framed.

1] Whether on the facts and in the circumstances of the case, the remittance of royalty and interest Rs.19,95,266/- received from Malaysia in consequence upon change in the rate of foreign exchange does partake the same character of royalty and interest as provided under the Agreement for avoidance of double Taxation and prevention of fiscal evasion with Malaysia and consequently not chargeable to tax in India.

2] Whether Income Tax Appellate Tribunal was legally justified in confirming disallowance made by Assessing Officer in respect of claim of appellant for depreciation amount to Rs.15,72,091/- pertaining to assets transferred upon amalgamation in the earlier year (Assessment Year 1992-93) from the amalgamating company, viz. Modern Stramit (I) Ltd., a company amalgamated by virtue of the order of the BIFR?

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                      3]       Whether   Income   Tax   Appellate   Tribunal   was   legally

justified in confirming disallowance made by Assessing Officer at Rs.6,78,39,204/- as share issue expenses which includes cost of advertisement, underwritting, commission, brokerage, fees, conference and meeting expenses, postage etc., which are revenue in nature and allowable u/s 37 of Income Tax Act, 1961?

2] It is not in dispute that the substantial questions of

law at Sr. Nos.1 and 2 are covered by our decision delivered on

07.09.2017 in Income Tax Appeal No. 27 of 2003 (M/s.

Ballarpur Industries Limited vrs. Commissioner of Income Tax).

So far as the substantial question of law at Sr. No.3 is concerned,

we are of the view that the same is covered by the decision of the

Apex Court in the case of Punjab State Industrial Development

Corporation Ltd. Vs. CIT, reported in 225 ITR 792, wherein the

expenses relating to issue of share capital were considered to be

an expenditure of a capital nature.

3] In view of this, the substantial questions of law at

Sr.Nos. 1 to 3 do not at all arise. The petition is, therefore,

dismissed.

                                    JUDGE                                 JUDGE
 Rvjalit