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2013 (12) TMI 129 - ITAT MUMBAIInterest on custom duty - accrual of expenses - Held that:- The accounts have been prpared on a non going concern basis and it is also mentioned that the management had no intention to continue the business in the unforeseeable future - The assessee had decided to close down the operation as the project was not viable - Therefore,only the expenses required for maintaining the corporate identity of the company could be allowed - The interest on custom duty has the same nature as custom duty and therefore it could be allowed on payment basis - The details filed on record show that the payment had not been made this year but in the immediate preceding year and in the subsequent year - Decided against assessee. Technology transfer fee - Held that:- The technical collaboration agreement had been entered into for starting a nursery for commercial production of bivoltine silk cocoons - The project ultimately became unviable and never started - Any expenditure incurred in connection with the project such as technical fees etc, has been considered as capital expenditure by CIT(A). Other expenses which are quite insignificant have also been rightly disallowed as the business has discontinued - Decided against assessee.
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