JUDGMENT : S.D. SHAH, J. 1. On being moved under section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following question of law for our opinion : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the annual listing fee paid to the stock exchange is allowable revenue expenditure of the assessee-company ?" 2. In order to answer the aforesaid question, a few relevant facts shall have to be stated : (i) The assessee is a public limited company and, for the relevant assessment year 1975-76, its accounting year ended on 31 December, 1974, the assessee claimed a sum of Rs.1,200 as annual listing fee paid to the stock exchange as deductible revenue expenditure. The Income-tax Officer disallowed the claim by making a remark while computing the taxable income to the following effect : 'Annual listing for purpose of capital'. (ii) Being aggrieved by the said order of the Income-tax Officer, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals), who decided the said appeal by making one observation only. In appeal to the Tribunal, it took the view that listing fees have to be paid by the company to the stock exchange every year, and that no enduring benefit, therefore, arises to the company by payment of annual listing fees. It also took the view that the benefit derived by the company does not augment its capital structure, and therefore, such expenditure cannot be treated as a capital expenditure. 3. In the case of Commissioner of Income Tax v. New India Industries Ltd., I.T.R. No. 199 of 1978 : (1993) 201 ITR 208 (Guj), an identical question was raised for consideration before us and, by the judgment and order dated 24 August, 1992, we have declined to answer the said question in view of the fact that it was brought to our notice that the Central Board of Direct Taxes has already issued a circular bearing F. No. 10/67-65 I.T(A1), dated 26 August, 1965, which reads as under : "ANNUAL LISTING FEE PAID TO A STOCK EXCHANGE. Attention is invited to Board's letter [F. No. 10/44/64/1T(A-1)] on the above subject. The matter has been reconsidered by the Board. Attention is invited to Board's letter [F. No. 10/44/64/1T(A-1)] on the above subject. The matter has been reconsidered by the Board. As the advantages accruing to a company as a result of getting its shares listed on a stock exchange contain substantial advantages pertaining to its day-to-day business, it has been decided that such expenses should be considered as laid out wholly and exclusively for the purposes of the business and, therefore, admissible as business expenditure under section 37(1). In view of the above, the instructions issued under Board's earlier letter referred to above may be treated as withdrawn." 4. In view of the aforesaid circular, it is obvious that the listing fees paid to the stock exchange shall have to be allowed as a revenue expenditure and, in view of the said circular, it is obvious that the other view to regard it as capital expenditure is not permissible. The Tribunal has, in our opinion, rightly taken the view that listing fees shall have to be paid by the company to the stock exchange every year, and that no enduring benefit arises to the company by payment of annual listing fees. Therefore, the benefit which the company would derive would not go to augment its capital structure, Therefore, the said expenditure cannot be treated as of capital nature. Even otherwise, listing of shares in the stock exchange has got high relevance so far as a public limited company is concerned. The status of the company is one in which the public are substantially interested and for that purpose, listing of shares in the stock exchange would assume importance so far as the public limited company is concerned. The business of the company also carries better prestige and better status when its shares are listed in the stock exchange. Such listing adds several advantages to the business carried on by the company particularly, in the matter of confidence of customers and loyalty of employees which generate value. In that view of the matter, in our opinion, the Tribunal was right in holding that the expenditure on account of listing fees paid to the stock exchange cannot be said to be a capital expenditure and that it shall have to be regarded as an expenditure of revenue nature. 5. In that view of the matter, in our opinion, the Tribunal was right in holding that the expenditure on account of listing fees paid to the stock exchange cannot be said to be a capital expenditure and that it shall have to be regarded as an expenditure of revenue nature. 5. In the result, we answer the question referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue. No costs.