Share issue expenses can be claimed u/s 35D by banks as preliminary expenses

Dhanalakshmi Bank Ltd. Vs CIT (Kerala High Court) Conclusion: Deduction under section 35D for amortisation of preliminary expenses in connection with the issue of shares for public subscription was allowable to assessee bank extending financial services. Held: AO denied deduction under section 35D on the ground that assessee was a bank extending financial services and not an industrial undertaking therefore, it would not be entitled to amortisation of preliminary expenses in connection with the issue of shares for public subscription. It was held the manner in which the “industrial undertaki...