Expenditure on expansion of share capital is capital expenditure irrespective of Expansion or creation of new assets

Issue :- Whether expenditure incurred to meet out the need for working funds in which expansion of share capital was undertaken, is capital expenditure even when the purpose for which expenditure was incurred did not result in creation of an asset or benefit due to intervention by an external agency. The assessee claimed deduction under the caption ‘share issue expenses paid during the year deferred in books’. The expenditure was claimed as revenue as the same was expended to augment its working capital. The assessee went for public issue and after incurring expenditure, just befor...