Case Law Details
Ocimum Bio Solutions India Ltd. Vs DCIT (ITAT Hyderabad)
On perusal of the financial statements submitted by the assessee, we find that there is no doubt that the assessee has increased share capital. On perusal of the provisions of section 35D, we find substance in the written synopsis submitted by the ld. AR of the assessee relying on the judgements quoted supra that section 35D provides amortization of certain expenses, which are in the nature of capital/intangibles/preliminary expenses, which have been incurred by the assessee in the preliminary stage of the company or in the normal course of business and the assessee is entitled to amortize of expenses over a period of time as per section 35D. Therefore, the AO is directed to allow the ROC expenditure incurred towards increase of share capital as per section 35D of the IT Act, 1961.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal filed by the assessee is directed against CIT(A) – 4, Hyderabad’s order dated 28/09/2018 involving proceedings u/s 143(3) of the Income- Tax Act, 1961 ; in short “the Act.
2. Briefly the facts of the case are that the assessee company, engaged in the business of R&D and software development in life sciences, filed its return of income for the AY 2007-08 declaring NIL income, which was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny and accordingly, the AO issued statutory notices to the assessee, against which, the AR of the assessee filed required information. After going through the information, the AO completed the assessment determining the assessed income of the assessee at Rs. 2,45,50,920/- by making the following expenses:
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