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2017 (3) TMI 1234 - AT - Income TaxTerm loan interests - Nature of expenditure - revenue or capital - Held that:- The nature of the impugned amount was duly disclosed in the notes of account attached to the balance sheet. The said note mentioned that the amount involved was long term bank interest and medium term banking on interest. If that be so there was no reason to treat the same as preoperative expenses. However this aspect needs factual examination at the level of the Assessing Officer. Learned CIT(Appeals) also has principally agreed with the proposition of the assessee but has held that adequate materials are not on record. In these circumstances in our considered opinion, the issue as to whether the amount involved is actually revenue in nature needs to be remitted to the file of the Assessing Officer. Accordingly the issue is remitted to the file of the Assessing Officer. The Assessing Officer shall examine this issue after giving the assessee an opportunity of being heard. After due examination if he finds that the amount involved was revenue in nature liable to be debited to the profit and loss account, the assessee's claim would deserve to be allowed - Decided in favour of assessee for statistical purposes
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