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2017 (7) TMI 106 - HC - Income TaxAllowability of revenue expenditure - guarantee commission paid to the bankers for securing timely repayment of credit facility and loan from Financial Institutions for the purposes of machinery and equipment - Held that:- The Division Bench of this Court in case of Kinetic Engineering Ltd (1997 (7) TMI 63 - BOMBAY High Court) was dealing precisely with the said issue, wherein, in the said case, the Assessee had to pay guarantee commission for securing timely repayment of credit facility obtained for the purpose of machinery and equipments required for running business. This Court considering various judgments of the Apex Court categorically came to the conclusion that the expenditure incurred for payment of guarantee commission is revenue expenditure. The act of borrowing money was incidentally to carrying on business.
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