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2013 (5) TMI 19 - ITAT DELHIInterest paid to HSIDC on installment of plot which was yet to be put to use - whether is of capital nature? - Held that:- As from the plain reading of section 36 it is clearly established that interest on loan taken for acquisition of such assets which are acquired by the assessee for extension of its existing business are not allowable till they are put to use. In the present case, there is no doubt and there is no dispute regarding the fact that assets were not put to use. Therefore, in AO had rightly made the disallowances and Ld CIT(A) had rightly confirmed the same. Assessee's reliance on Capital Bus Service v. CIT, New Delhi [1980 (2) TMI 69 - DELHI High Court], India Cements Limited Versus Commissioner Of Income-Tax, Madras [1965 (12) TMI 22 - SUPREME Court] & Bombay Steam Navigation Co. Pvt. Ltd. v. CIT [1964 (10) TMI 12 - SUPREME Court] were misconceived as the all are altogether on different facts. In favour of revenue. Disallowance of processing charges - Held that:- They are allowable business expenditure which were incurred by the assessee during the course of business. The nature of expenses is similar to expenses as incurred in the case of India Cement Ltd. V. CIT (1965 (12) TMI 22 - SUPREME Court) as relied upon by the assessee. In favour of assessee.
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