R.K.AGRAWAL,J. - (1.) The present appeal arises out of the judgment and order dated 14.06.2005 passed by the High Court of Gujarat at Ahmedabad in Tax Appeal No.333/2004.
(2.) The respondent-assessee is a public limited company and for the assessment year 1994-95, it had filed its return wherein it had claimed revenue expenditure of L 65,47,448/- on advertisement and public issue. However, in the Return of Income, the Company made a claim that if the aforesaid claim cannot be considered as a revenue expenditure then alternatively then the said expenditure may be allowed under Section 35D of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by way of capitalizing in the plant and machinery obtained.
(3.) The Assessing Officer issued an intimation under Section 143(1)(a) of the Act on 23.02.1995 disallowing a sum of L 58,92,700/- out of the preliminary expenditure incurred on public issue. He, however, allowed 1/10th of the total expenses and raised demand on the balance amount.;