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2021 (7) TMI 490 - AT - Income TaxUnexplained cash credit u/s.68 - opening balance of loan amount - allegation that, the assessee had provided no evidence to prove that the said amount represents a known liability which is payable - CIT-A deleted the addition - HELD THAT:- We concur with the view taken by the CIT(A), viz. that the interest accrued liability of ₹ 15.30 crore was transferred to the assessee on demerger/unbundling of the erstwhile MSEB; and as the said liabilities in question pertained to the earlier year, the same, thus, could not have been added during the year under consideration as an unexplained cash credit u/s 68 of the Act. We, therefore, finding no infirmity in the view taken by the CIT(A) uphold the deletion of addition - Decided against revenue. Disallowance of insurance charges of HVDC projects and lease rentals for HVDC projects - CIT-A deleted the addition - HELD THAT:- We concur with the view taken by the CIT(A), that as rightly claimed by the assessee that the expenses in question pertaining to the HVDC project were not in the nature of prepaid expenses, but pertained to the year under consideration i.e A.Y. 2008-09, therefore, the same were rightly claimed as deduction. Accordingly, in the backdrop of our aforesaid deliberations, we are of the considered view that no infirmity arises from the order of the CIT(A) to the extent he had vacated the disallowance of the HVDC expenses, viz. Insurance charges and lease rentals - Decided against revenue. Disallowance of stamp duty and service fee - CIT-A deleted the addition - HELD THAT:- Stamp Duty expenses and Service fees expenses having been incurred by the assessee in the normal course of its business, which had not resulted to creation of any capital asset of an enduring nature, thus were allowable as a deduction u/s 37(1) of the Act. Our aforesaid view is fortified by the judgment of the Hon”ble Supreme Court in the case of India Cements Ltd. [1965 (12) TMI 22 - SUPREME COURT]wherein it has been held by the Hon”ble Apex Court that the stamp duty, registration fees, lawyers fees etc. paid for obtaining a loan is allowable as a business expenditure. - Decided against revenue. Disallowance of freight expenditure - CIT-A deleted the addition - HELD THAT:- We concur with the view taken by the CIT(A) that the disallowance of freight expenses by the A.O was based on misconceived facts. As the aforesaid freight expenditure was incurred by the assessee for transportation/shifting of an existing capital asset i.e transformer (Nasik Circle), for the purpose of getting the same repaired, the same in our considered view, as observed by the CIT(A), and rightly so, was allowable as a revenue expenditure u/s 37(1) of the Act.- Decided against revenue.
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