IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN TUESDAY, THE 13TH OCTOBER 2009 / 21ST ASWINA 1931 ITA.No. 469 of 2009() --------------------- ITA.55/COCH/1999 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT/ASSESSEE ------------------------------------------------- TECHIL CHEMICALS AND HYDROPOWER LTD., CHINGAVANAM.P.O., KOTTAYAM-686531 REP. BY ITS MANAGING DIRCTOR SHRI. S.B.SOMANI. BY ADV. SRI.C.KOCHUNNY NAIR SRI.DALE P.KURIEN RESPONDENT(S): APPELLANT/REVENUE -------------------------------- THE COMMISSIONER OF INCOME TAX COCHIN. ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 13/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & V.K. MOHANAN, JJ. -------------------------------------------- I.T.A. No. 469 OF 2009 -------------------------------------------- Dated this the 13th day of October, 2009 JUDGMENT Ramachandran Nair, J. Heard counsel appearing for the appellant and standing counsel appearing for the respondent. The question raised is whether expenditure incurred for raising additional share-capital can be added to cost of depreciable asset which in this case is pollution control equipment entitled to 100% depreciation. The Tribunal relying on the two decisions of the Supreme Court, one in PUNJAB STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD. V. CIT , 225 ITR 792, and the other in BROOKE BOND INDIA LTD.'s case, 225 ITR 798, held that expenditure incurred for raising additional share- capital is an expenditure of capital nature and therefore appellant is not entitled to claim the same as revenue expenditure. Besides this, there is no provision in the Income Tax Act authorising the assessee to add the cost incurred for raising additional share-capital to cost of plant and machinery or pollution equipments for claiming depreciation under 2 Section 32 of the I.T. Act. We find no merit in the claim of the appellant. Consequently the appeal filed by the assessee is dismissed. (C.N.RAMACHANDRAN NAIR) Judge. (V.K. MOHANAN) Judge. kk 3