Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 285 - AT - Income TaxLegal and professional charges - whether the expenditure is capital and is eligible for amortisation u/s.35D? - Assessee is a company running a hospital got amalgamated with its sister concern with the approval of Hon’ble High Court - As per AO in the absence of project wise classification, bills against which payments are made, services in specific obtained, the AO disallowed the expenditure on estimate basis - Held that:- Order of the CIT(Appeals) is silent on the real nature of expenses. Since there is no finding on the basis of the material available on record that these expenses are revenue expenses, it would be just and proper to set aside the order of the CIT(A) and remand the issue to the AO for fresh consideration. The assessee will be at liberty to substantiate its claim for deduction by filing additional evidence. Disallowance on account of interest claimed - CIT(A) deleted the addition - Held that:- The order of assessment is silent as to the basis on which the AO made the impugned disallowance. The submissions made before the CIT(A) by the assessee have not been controverted,thus it appears that the loans on which the interest was paid by the assessee were all used for the purpose of business and therefore no disallowance of interest could be made. It has not been demonstrated by the revenue that the borrowed funds on which interest was paid and claimed as deduction while computing the total income had not been used for the purpose of business of the assessee. In favour of assessee.
|