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2019 (4) TMI 1442 - CALCUTTA HIGH COURTDisallowance being the front end fees or processing fees for obtaining loan - capital or revenue or deferred revenue expenditure - front end fee is part of interest u/s 2(28A) - assessee claimed amortization of the expense u/s 35D - HELD THAT:- Issue similar to the case of the assessee relating to assessment year 2004-05 [2019 (4) TMI 1321 - CALCUTTA HIGH COURT] interest payment was spread over the duration of the loan. Therefore, the front ends fee constituted interest liability of the assessee spread over a period of time. Obtaining the loan and paying interest to service it ensured long term benefit to the assessee. Hence, this expenditure was revenue and not capital - Decided in favour of assessee. Allowable revenue expenditure - Deduction on payment of premium of pre payment of the loan to reduce its interest burden in view of falling interest rate - HELD THAT:- Aforesaid expenditure incurred by the assessee by way of premium paid on pre-payment of loan for reducing interest the liability cannot be called acquisition of any asset and cannot be treated as capital expenditure and it has to be allowed as revenue expenditure. For the aforesaid reason this appeal is dismissed and accordingly question no. 1 is answered in negative and in favour of assessee and against the revenue.
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