STATE BANK OF MYSORE,BANGALORE vs. JCIT, BANGALORE

ITA 661/BANG/2015Status: DisposedITAT Mumbai03 November 2025AY 2011-12Bench: JUSTICE (RETD.) C V BHADANG (President), MS PADMAVATHY S (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the expenditure incurred towards a rights issue of shares is generally considered capital in nature and not eligible for deduction under Section 35D. However, the Tribunal also acknowledged that certain expenses related to capital issues might be amortizable.

What were the facts?

The assessee, State Bank of India (erstwhile State Bank of Mysore), incurred expenditure related to issuing rights shares. The assessee claimed a portion of this expenditure as a deduction under Section 35D, while the Assessing Officer disallowed it, classifying it as capital expenditure.

What were the issues?

Whether expenditure incurred in connection with a rights issue of shares is eligible for deduction under Section 35D of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 35D

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Cases cited in this judgment(9)Show list

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Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: JUSTICE (RETD.) C V BHADANG&

For Appellant: Shri Ketan Ved & Ninad Patade
For Respondent: Shri P.C. Chhotaray, Spl. Counsel
Hearing: 18.08.2025

Heard together (2 matters)

I.T.A. No. 661/Bang/2015
I.T.A. No. 684/Bang/2015

Read from the judgment's own cause title. This page is filed under one of them.

Per Padmavathy S, AM: These cross appeals by the assessee and the revenue are against the order of the Commissioner of Income Tax (Appeals)-14, Large Tax Payer Unit-Bangalore [In short 'CIT(A)'] passed under section 250 of the Income Tax Act, 1961 (the Act) d

The order continues below.

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