M/S.SHASUN CHEMICALS AND DRUGS LTD. vs COMMISSIONER OF INCOME TAX, CHENNAI

The Supreme Court addressed the issues of amortization of expenditure under Section 35D of the Income Tax Act, 1961, and the deduction for bonus payments made by the appellant, M/s. Shasun Chemicals and Drugs Ltd. The Court held that share issue expenses are capital in nature and thus not deductible under Section 35D, reaffirming the precedent set in Brook Bond India Ltd. v. Commissioner of Income Tax. The appeals were dismissed, upholding the disallowance of the expenses for the relevant assessment years.