Commissioner Of Income-Tax vs Kodak India Ltd.

The Supreme Court ruled that the expenditure of Rs. 8,67,624 incurred by Punjab State Industrial Development Corporation Ltd. for the public issue of shares is classified as capital expenditure, thereby impacting the tax implications under the Income Tax Act. The Court held that such expenses do not qualify as revenue expenditure, aligning with the principles established in prior tax jurisprudence. Consequently, the appeal was allowed, and the previous order was set aside in favor of the Revenue.