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2014 (11) TMI 471 - AT - Income TaxClassification of expenses - Take Out Assistance Fee – Capital or revenue expenses – Held that:- Following the decision in Commissioner of Income Tax Versus M/s Noida Toll Bridge Co Ltd. [2012 (11) TMI 556 - ALLAHABAD HIGH COURT] - ‘take out assistance fee’ paid by the assessee is allowable expense u/s 37(1) of the Act – thus, the addition made by the AO and confirmed by Ld. CIT(A) needs to be deleted – Decided in favour of assesse. Classification of expenses – revenue or capital - Amortization of zero coupon bonds treated as part of the package of relief and concessions granted by CDR empowered group of the Corporate Debt Restructuring Cell – Held that:- Assessee rightly contended that the zero coupon bond is issued in order to compensate the loss of interest payable to them and accordingly amortization of zero coupon bond is nothing but the payment of interest to them and it is deductible expenditure as per Section 37(1) of the it act being revenue in nature – relying upon CIT Vs Gujarat Guardian Ltd. [2009 (1) TMI 13 - HIGH COURT DELHI] - addition made by the AO and confirmed by Ld. CIT(A) could not be made in view of the facts and circumstances of the case – the AO is directed to delete the addition – Decided in favour of assessee.
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