« Top Headlines » Open DEMAT Account in 24 hrs  How much gold jewellery can you keep at home? Nagpur ITAT explains rules on ownership, gifts, taxability  ?5.31 lakh TDS refund allowed by ITAT Delhi: Why absence of an original ITR did not block the taxpayer  Missed the ITR Filing Deadline? How to Claim Your Income Tax Refund and Correct Mistakes Before December 31, 2026  GST Return Preparation & ITC Analysis with TallyPrime (Hinglish Session)  GST Return Preparation & ITC Analysis with TallyPrime (Hinglish Session)  GST Return Preparation & ITC Analysis with TallyPrime (Hinglish Session)  Income-Tax Department Moves to Bring Greater Certainty to International Tax Cases  ITR Defective Notice for AY 2026-27: Reasons, 15-Day Deadline and What Happens If You Ignore It  ITR Refund Status 2026: How to Track Your Income Tax Refund Online – Step-by-Step Guide  GST Council Explores Andhra Pradesh’s AI-Driven Tax Administration Model  ITR filing 2026: Who must file by August 31? Tax department explains «  ‘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.