« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing: 6 Ways to Get Exemption on Income Tax  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals «  ‘Speed money’ is undisclosed income indeed, says court... Online tax filing foxes corporates... » Expenses on bonus shares is revenue expenditure, rules SC October, 03rd 2006 The Supreme Court has ruled that expenditure incurred in the process of issuing bonus shares is a revenue expenditure and the company is eligible to avail of tax benefits while filing returns. While hearing an appeal filed by the commissioner of income tax for disallowing tax breaks claimed by General Insurance Corporation, the apex court Bench observed: The issue of bonus shares leaves the capital employed unchanged and does not result in conferring an enduring benefit to the company and the same has to be regarded as revenue expenditure. The Bench, comprising Justice Ashok Bhan and Justice Markandey Katju, said: Issuance of bonus shares by capitalisation of reserves is merely a reallocation of a companys funds. There is no inflow of fresh funds or increase in the capital employed, which remains the same. The issue before the court was whether the expenditure incurred in connection with the issuance of bonus shares is a capital expenditure or revenue expenditure. GIC, which has four subsidiaries, filed a return of Rs 58.52 crore along with the audit report for the assessment year 1991-92. However, the assessing officer disallowed a few expenses incurred as revenue expenditure to the tune of Rs 1.4 crore incurred toward stamp duty and registration fees paid in connection with the increase in authorised share capital.