Expense on buy-back of shares is revenue expenditure

DCIT Vs Ocwen Financial Solutions Pvt. Ltd.(ITAT Bangalore)

Facts-

1. Treatment of expenditure incurred on buy-back of shares-

An assessee has spent amount of INR 8,90,961 on buy-back of shares and debited the same to Profit & Loss Account treating the same as ‘revenue expenditure’.

AO treated the same as ‘capital expenditure’.

2. Set-off of brought forward losses-

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