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2013 (12) TMI 1212 - ALLAHABAD HIGH COURTDisallowance out of preliminary expenses - Held that:- Following assessee's own casew for A.Y. 1994-95 - Total preliminary expenses incurred by the assessee had to be apportioned in the ten successive previous years, for preliminary expenses in accordance with Section 35D of the Income Tax Act, determining the previous year in which the business was commenced or in which the existence of the industrial undertaking was completed or in which the new industrial units commenced operation - Decided against Revenue. Disallowance of deferred revenue expenditure - Held that:- The AO had not disputed the genuineness of the expenditure. His only objection was that the claim of expenses was on deferred basis. The advances were not doubted and the expenses were incurred during the year - The assessee had claimed less than the allowable expenditure, there was no justification for the disallowance under consideration - Decided against Revenue. Disallowance of debenture transfer fee, upfront fee and processing fee - Held that:- There was no controversy as to whether the expenditure was capital expenditure or revenue expenditure - The borrowed funds were utilized for working capital, and since these funds were utilized for the business purpose, no disallowance was made out of the interest paid on such borrowed funds - The Tribunal further found that the AO has accepted that the interest bearing funds were entirely utilized by the assessee for its business purposes - Tribunal is final fact finding authority - Decided against Revenue.
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