Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 407 - AT - Income TaxNature of expenses - expenditure incurred on stamp duty and mortgage charge for obtaining loan - revenue or capital expenditure - HELD THAT:- We find that the issue is squarely covered in favour of the assessee by the decision of India Cements Ltd. [1965 (12) TMI 22 - SUPREME COURT] wherein assessee obtained certain loan which was secured by a charge on the fixed assets of the company. It incurred expenditure like legal fees, registration fees, stamps etc. and claimed that it was a business expenditure - as held that the loan obtained was not an asset or advantage of an enduring nature; that the expenditure was made for securing the use of money for a certain period and that it was irrelevant to consider the object with which the loan was obtained. Consequently, in the circumstances of the case, the expenditure was not in the nature of capital expenditure and was laid out or expended wholly and exclusively for the purpose of the assessee’s business Thus we are of the view that the action of the authorities below in holding the expenditure as capital in nature is not sustainable. - Decided in favour of the assessee.
|