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2017 (11) TMI 1416 - ITAT MUMBAIClaim of deduction towards loan processing charges - allowable business expenditure - Held that:- loan processing charges paid by the assessee was wholly and exclusively for the purpose of assessee’s business and by incurring such expenditure neither any new asset was created nor any enduring benefit has accrued to the assessee. While deciding the issue of identical nature in case of assessee’s sister concern, the Tribunal has allowed loan processing charges as revenue expenditure. - Decided in favour of assessee. Deduction of an amount towards loans sourcing fees paid to Maruti Udyog Ltd. - Held that:- The issue has been decided in favour of the assessee in preceding assessment year. In view of the aforesaid submissions of the learned Counsels appearing for the parties, we uphold the order of the learned Commissioner (Appeals) as found that the loan sourcing fees was paid to Maruti Udyog Ltd. and is amortized over the period of loan agreement. He found that only the amount which is amortizable for the current year has been debited to the Profit & Loss account. He also found that the Assessing Officer has not provided any basis why he considers the expenditure as capital in nature. Further, the learned Commissioner (Appeals) found that in assessee’s own case for assessment year 2008–09, similar deduction claimed by the assessee was allowed by the first appellate authority. Addition of sales promotion expenses - Held that:- As before the first appellate authority the assessee furnished bifurcation of the expenses claimed of ₹ 10.75 crore. As stated by the assessee, the aforesaid amount comprises of different component of services availed by the assessee which also includes sales promotions services. As per bifurcation submitted before the learned Commissioner (Appeals), the expenses incurred towards sales promotion was to the tune of ₹ 74,62,146 and on that basis, the learned Commissioner (Appeals) has directed the Assessing Officer to disallow 10% of ₹ 74,62,146. Thus, from the aforesaid facts, it is evident that the assessee has brought fresh facts before the learned Commissioner (Appeals) insofar as it relates to quantum of sales promotion expenses which was never filed before the Assessing Officer. In view of the aforesaid we are inclined to restore the issue back to the file of the Assessing Officer to verify assessee’s claim and disallow 10% out of sales promotion expenses claimed by the assessee. This ground is allowed for statistical purposes.
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