PTC ENERGY LIMITED,NEW DELHI vs. DCIT, NEW DELHI

This appeal is filed by the assessee against the order of the ld CIT(A)-7, New Delhi dated 11.09.2015 for the Assessment Year 2012-13. The solitary issue in this appeal is that whether Rs. 41 lakhs claimed by the assessee of expenditure for increase in authorised share capital of the company to the Registrar of Companies is allowable as deduction u/s 35D of the Act or not.

The ld AO examined the return of income filed by the assessee on 26.09.2012, wherein, income of Rs. 39202630/- was declared and he found that the assessee has incurred Rs. 22268000/- for ROC fees for increase of authorised capital during the Financial Year 2008-09 and for this year has claimed 1/5th of the same i.e. Rs. 41 lakhs as deduction u/s 35D of the Act. The ld AO noted that such expenditure is a capital expenditure, therefore, he disallowed the above claim and passed an assessment order u/s 143(3) of the Act on 02.03.2015 determining the total income of the assessee of Rs. 44472760/-.