Registrar of Companies Fees for Working Capital Enhancement is Capital Expenditure

Dharani Developers Private Limited Vs ACIT (ITAT Chennai) The case of Dharani Developers Private Limited Vs ACIT before the ITAT Chennai deals with the classification of fees paid to the Registrar of Companies (ROC) for enhancing working capital. The central question revolves around whether this expenditure should be categorized as revenue or capital expenditure. The appellant contends that the fees paid to the ROC were for statutory compliance necessary to increase the authorized share capital, thus constituting revenue expenditure. Conversely, the department argues that such expenses are dir...