Sec. 37 & 115JB of Income Tax Act, 1961—Business Expenditure - The appeal under Section 260A of the Act, 1961 has been filed by the revenue. The issues, which arises for consideration is whether interest paid for delay in allotment of shares is also an expenditure like brokerage/commission connected with raising of share capital and partakes the character of share capital or the same can be treated as revenue expenditure. The assessee with an object to increase share capital has incurred expenses in the form of payment of interest on account of delay in allotment of shares, yet the increase in capital results in expansion of the capital base of the company and may also help in profit making. Therefore, it retains it’s character as capital expenditure as the expenditure is directly relatable to expansion of the capital base of the company. Appeal of the revenue allowed. - CIT V/s GMR INDUSTRIES LTD. - [2020] 425 ITR 504 (KARN).