TMI Blog2008 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... the charges payable to COFACE with interest they are held to be revenue expenditure and deductible u/s 37 of the Income-tax Act, 1961 - 3957-3958 of 2002 - - - Dated:- 8-2-2008 - JUDGMENT PER : KAPADIA, J. These civil appeals are filed by the Department against decision dated 25.4.01 in Tax Appeal Nos.39 and 40 of 2001 delivered by Gujarat High Court. 2. Two questions of law arise for det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtiles Ltd. - (1997) 227 ITR 464, this Court has held that commission paid by the assessee to the banker and the insurance company was admissible deduction under Section 37 of the Income-tax Act, 1961. To the same effect is the judgment of this Court in the case Commr. of Income-tax v. Sivakami Mills Ltd. - (1997) 227 ITR 465. For the aforestated reasons, we answer question No.(1) in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid to COFACE on foreign currency loan was in the nature of interest and commitment charges and since the charges have been paid in relation to the project of manufacturing phosphoric acid which did not commence production during the assessment year under consideration, the expenses incurred were capital in nature. The Department also placed reliance in this connection on Explanation 8 to Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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