COMMNR. OF INCOME TAX, MUMBAI vs M/S. GENERAL INSURANCE CORPN.OF INDIA

The Supreme Court held that the expenditure incurred for issuing bonus shares is to be treated as revenue expenditure rather than capital expenditure. The Court referenced Section 143(3) of the Income Tax Act and distinguished the nature of expenses related to bonus shares from those that expand the capital base of a company, affirming the Tribunal's decision. The outcome upheld the lower courts' rulings, allowing the expenses related to bonus shares as deductible revenue expenditure.