expenditure. It was on record that the expenditure
incurred on GDR issue was Rs.8.34 crores and the assessee had not
claimed the same ... further referred to the stipulation, contained in the document prepared
for GDR ISSUE wherein it explained as under:
"CAPITAL EXPANSION:
Arvind
extended the revisional proceedings to that issue also by issuing a letter subsequently.
Held: The issue as to whether increase due to the exchange fluctuation ... March, 2000. The GDR issue is nothing but an issue of shares made outside India. The proceeds of the GDR issue had to some extent
nature of quasi capital and further the
entire proceeds of the GDR issue have been invested in the aforesaid
subsidiary and accordingly no addition ... Assessing Officer on account of disallowance
1/5th of GDR issue expenses claimed by the company as allowable
deduction
lakhs (being 1/10th of the total expenditure
on GDR issue) to its P & L A/c. for F.Y.
199596 onwards ... seen that part of the GDR issue
was used for making investments, which
includes the investment of Rs.96.62 crores
in UTI. On scrutiny
2002
Bajaj Holdings Investment Ltd
(k) Erred in allowing expenses on GDR issue as covered in Sec.
35D even though these expenses cannot be said
5598/Mum/2016
commission etc. in respect of GDR issue was not income by way of fees for
technical services because although the lead managers ... rendered
technical, managerial or consultancy services for bringing out the GDR issue,
such services are not made available to the assessee in as much
Assessing Officer by
treating the exchange gain on repatriation of GDR issue proceeds of Rs.
1655518946/- as revenue in nature without appreciating the fact that ... GDR issue
was utilized by the assessee company as circulating capital, which is a
circulating commodity for the banking company.
b) On the facts
issue of Global Depository
Receipts for which they are entitled for remuneration. The Tribunal found
that the services of the managers for issue of Global ... outside India, the service of managers are enjoyed. The decision to
issue GDR was taken by Indian company without any assistance from
managers
India and also
provides various advisory services like M&A. GDR issue management. Private placements, etc.
ISI manages various overseas issues of Indian Corporates ... with regard to its activities relating to management of issues of Global Deposit
receipts (GDR), Foreign Currency Convertible Bonds and such other instrument. For this
light of material on record and precedents cited. In our opinion, this issue is covered in favour of the assessee by the decision of Tribunal ... incurred expenditure of Rs. 36,90,306 on a proposed GDR issue. Subsequently, the company dropped the proposed GDR issue, wrote
