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2012 (6) TMI 63 - ITAT KOLKATACapital expenditure vs Revenue expenditure - expenditure incurred on repairing of godowns damaged in Tsunami disaster - Revenue contended the same as capital expenditure on basis of quantum of expenditure - Held that:- CIT(A) has rightly observed that no inference can be drawn from the facts of the case that new asset has been credit, neither the AO has pointed out any such creation of the new asset. It is further observed the expenditure incurred for godown maintenance for the past five years has been allowed by the revenue as revenue expenditure. Hence, the same is allowed as revenue expenditure - Decided in favor of assessee. Upfront fee for term loan - Prepayment penalty charges - assessee submitted that expenses were incurred in relation to obtaining bank loans by shifting the same from Consortium of Banks to ABN AMRO Bank against the Floating Crane on which depreciation has been claimed starting from FY 2003-04 - no new asset came into existence - Held that:- There is no need to further capitalize the upfront fee for term loan in connection with the transfer of the loans from one bank to another against prepayment penalty charges paid to the existing banks. Especially when the subsequent loan as bearing is having less rate of interest i.e. 10% as against the existing term loan of three banks which is 15% - Decided in favor of assessee.
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