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Section 37(1) of the Income-tax Act, 1961 - Business Expenditure - Allowability of STATUTORY FEES Authorisation fee paid by assessee-bank to SEBI was allowable as business expenditure [Assessment year 1991-92] [In favour of assessee] CIT v. Vysya Bank Ltd. [2009] 313 ITR 315 (Kar.) Where the Commissioner, on a perusal of the records of the assessee, found that the claim of Rs. 5,00,000 being paid to SEBI during the assessment year as authorization fee, had wrongly been allowed as revenue expenditure and, therefore, he set aside the assessment order acting under section 263. Held that it had been found that the aforesaid sum of Rs. 5,00,000 deposited by other banking companies with the SEBI had throughout been treated as revenue expenditure. If the revenue had been treating the amount of Rs. 5,00,000 deposited by the similarly situated assessees with the SEBI as revenue expenditure, then there was no reason why a different treatment should be meted out to the present assessee. Therefore, the assessee's claim was to be allowed. M.V. Seshachala for the Appellants. S. Parthasarathi for the Respondent. JUDGMENT Deepak Verma, J. - This appeal under section 260A of the Income-tax Act, 1961 (hereinafter shall be referred to in short as "the Act"), has been preferred by the Revenue against the order passed by the Income-tax Appellate Tribunal, Bangalore Bench, in I. T. A. No. 408/Bang/1996, dated March 28, 2002, raising the following substantial question of law : "Whether the Tribunal was correct in holding that the payment of Rs. 5,00,000 to SEBI towards authorisation fee as per the Securities and Exchange Board of India Act, 1992, should be treated as a revenue expenditure and not as a capital expenditure as held by the Commissioner exercising the jurisdiction under section 263 of the Act." 2. The short facts, material for deciding the said matter, are as under : "The respondent-assessee is a company carrying on the business of banking. In respect of the assessment year 1991-92, the assessee filed a return of income on December 27, 1991, showing an income of Rs. 10,01,37,310. The Assessing Officer took up the matter for scrutinizing the assessment. The assessment was…

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