Deputy Commissioner Of Income Tax vs Raghuvir Synthetics Ltd.

Whether preliminary expenses incurred on public issue of shares constitute revenue expenditure or capital expenditure, and whether such a debatable issue can be disallowed while processing return under section 143(1)(a) of the Income Tax Act, 1961 --- Held: The expenses are capital expenditure, and since the Gujarat High Court (having jurisdiction over the assessee) had settled this position, it was not a debatable issue and could be disallowed under section 143(1)(a).