Aloke Chakrabarti, J. - (1.) The assessee, a public limited company being in need of funds for its increased working capital requirements, made a public issue of its equity shares for raising working capital. In this connection, the assessee incurred expenses of Rs. 9,25,624 which was claimed by it as revenue expenditure as was incurred for the purpose of its business for the assessment year 1987-88.
(2.) The Assessing Officer, by his order dated June 29, 1990, disallowed the said expenditure holding the same to be capital expenditure. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals), who by order dated December 30, 1991, remanded the matter with a direction to examine the order of the Controller of Capital Issues in respect of the said public issue. The Assessing Officer by his fresh order dated July 30, 1992, again held that the expenses were capital in nature.
(3.) Further appeal was preferred by the assessee before the Commissioner of Income-tax (Appeals) and therein it was held that the expenses so incurred were revenue expenditure and, therefore, addition made by the Assessing Officer to the extent of Rs. 9,25,624 treating the same as capital expenditure was directed to be deleted and the appeal was thus allowed.;