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2021 (7) TMI 209 - AT - Income TaxDisallowance on amortization of the premium paid for the lease hold land - HELD THAT:- We find that the learned AR fairly stated that this issue is covered against the assessee by the order of this tribunal in its own case for assessment year 2004-05 [2011 (3) TMI 1630 - ITAT MUMBAI] wherein this Tribunal by placing reliance on case of Mukund Limited [2007 (2) TMI 358 - ITAT MUMBAI] against the assessee. Since this fact is not disputed by the parties before us, the operative portion of the said tribunal order is not reproduced herein for the sake of brevity. Respectfully, following the said order, the ground raised by the assessee are dismissed. Addition u/s 41(1) - absence of the breakup of the loan it is not clear whether the loan was solely on account of principal amount or some interest element was also embedded into it - HELD THAT:- As the amounts written back purely represent principal portion of the loan and does not contain any interest element thereon. Admittedly, no deduction has been claimed by the assessee in earlier years in respect of the principal portion of the loan liability. Hence, the provisions of Section 41(1) of the Act cannot come into operation at all. See MAHINDRA AND MAHINDRA LTD. THRG. M.D. [2018 (5) TMI 358 - SUPREME COURT] Disallowance of swap charges on loans obtained by the assessee - HELD THAT:- As the swap charges which the assessee has incurred for conversion from floating to fixed rate of interest, would necessarily partake the character of interest. The interest paid by the assessee when the loan was in floating rate, was duly allowed by the learned Assessing Officer. Hence, the character of the transaction does not change pursuant to this swap from floating to fixed rate. The utilization of the loans for the purposes of business has not been disputed by the learned DR before us, hence, there is no question of disallowance of any interest, whether nomenclature as interest or swap charges. The nomenclature of the transaction is absolutely irrelevant than the substance of the transaction. Thus we hold that the assessee is entitled for deduction towards swap charges. Accordingly, the ground raised by the assessee are allowed.
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