IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR WEDNESDAY, THE 30TH JANUARY 2008 / 10TH MAGHA 1929 ITA.No. 186 of 2001() --------------------- ITA.876/COCH/1993 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT:- --------------------------------------- M/S.THE FEDERAL BANK LTD; P.B.NO.103, FEDERAL TOWERS, ALWAYE – 683 101. BY ADV. SRI.P.BALACHANDRAN RESPONDENTS/APPELLANTS:- ------------------------------------------- 1) THE DEPUTY COMMISSIONER (ASSMT.( SPECIAL RANGE, ERNAKULAM. 2) THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.GEORGE K. GEORGE, SC FOR IT THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 30/01/2008 ALONG WITH ITA.NO.190/2001, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N. Ramachandran Nair & T.R. Ramachandran Nair, JJ. - - - - - - - - - - - - - - - - - - - - - - - - I.T.A.NOs.186 & 190 of 2001 - - - - -- - - - - - - - - - - - - - - - - - - - - Dated this the 30th day of January, 2008. JUDGMENT C.N. Ramachandran Nair, J. The question raised in these appeals is whether the payment made to the Registrar of Companies for increasing capital of the assessee, is an allowable expenditure. The issue is covered against the assessee by the decision of the Supreme Court in Punjab State Industrial Development Corporation Ltd. v. Commissioner of Income Tax (225 ITR 792). Even though learned counsel for the assessee contended that there is distinction in as much as the appellant herein is a banking company and the case decided by the Supreme Court relates to other company, we do not think such difference in the nature of operation of the company affects the application of the decision, because, so far as expenditure is attributable to increase in capital, it is necessarily a capital expenditure not allowable as a revenue expenditure. The appeals filed by the assessee are, therefore, dismissed. (C.N. Ramachandran Nair, Judge.) (T.R. Ramachandran Nair, Judge.) kav/ -2- C.N. Ramachandran Nair & & T.R. Ramachandran Nair, JJ. - - - - - - - - - - - - - - - - - - - - - - I.T.A. Nos.186 & 190 of 2001 - - - - - - - - - - - - - - - - - - - - - - JUDGMENT 30th January, 2008.