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2012 (9) TMI 973 - ITAT MUMBAIDisallowance of interest u/s. 36(1)(iii) - Held that:- It is not disputed that the assessee firm has a total capital of ₹ 212 crores. It is also an undisputed fact that for the year under consideration, the net profit available for appropriation was to the tune of ₹ 30.41 crores whereas the amount given as interest free loan is only to the tune of ₹ 21.95 crores. In our considerate view, the ratio laid down by the Hon’ble Jurisdictional High Court in the case of Reliance Utilities & Power Ltd.,(2009 (1) TMI 4 - BOMBAY HIGH COURT) squarely apply on the facts of the case. We, therefore, reverse the findings of the Ld. CIT(A) and direct the AO to delete the addition Disallowance of expenses as Brand Development expenses and professional fees for Brand Development - Held that:- We find that the assessee has not created any tangible or intangible assets of enduring nature by incurring such Brand development expenses. In our considerate view, such expense is an integral part of the profit earning process of the assessee firm and not for an acquisition of an asset or a right of permanent in nature. Respectfully following the ratio laid down by the Hon’ble Supreme Court in the case of Empire Jute Co. (1980 (5) TMI 1 - SUPREME Court), the Brand development expenses incurred by the assessee firm are revenue in nature therefore we direct the AO to allow the same
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