Expense related to dropped ADR listing plan allowable as revenue

ACIT Vs. Nicholas Piramal India Ltd. (ITAT Mumbai)

We notice that assessee has incurred consultancy charges to list the ‘ADR’ in ‘NYSE’ and later dropped this project. The AO treated the expenditure as capital and disallowed the same and simultaneously, invoked provision of section 40(a)(i) and 195 of the Act. We notice that in the similar situation, the Hon’ble Bombay High Court in the case of Nimbus Communications Ltd.(supra) has treated the capital expenditure of share issue expenses, which ultimately aborted pu

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