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2019 (8) TMI 295 - ITAT BANGALORECharacterization of expenses - Expenditure incurred on designing of logo - revenue or capital expenditure - HELD THAT:- From a perusal of the bill, it is evident that the break up includes normal / routine business expenditure in the form of office stationeries, name boards, T-Shirt design, power point presentation, etc. - we do not find that these expenses incurred by the assessee have resulted in the creation of an asset or augmentation of any profit making asset of enduring nature / benefit. The aforesaid expenditure has also to be seen from the context of business necessity or business expediency also. In our view, in the light of the facts and circumstances of the case on hand, as discussed above, since the aforesaid expenditure may be regarded as an integral part of the profit earning process and not for an acquisition of new asset or right of permanent character, the possession of which is a condition for carrying on business, the said expenditure is to be regarded as revenue expenditure. Consequently, grounds 3 to 5 of assessee’s appeal are allowed. Charging of interest under section 234D - HELD THAT:- Assessee denies himself liable to be charged interest u/s 234D of the Act. The charging of interest is consequential and mandatory and the AO has no discretion in the matter. This proposition has been upheld by the Hon’ble Apex Court in the case of Anjum H. Ghaswala [2001 (10) TMI 4 - Supreme Court] and we, therefore, uphold the action of the AO in charging the assessee the aforesaid interest u/s 234D of the Act. The AO is, however, directed to recompute the interest chargeable u/s 234D of the Act, if any, while giving effect of this order.
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