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TMI Blog2017 (6) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... not appreciating the fact that the loan is for a period more than one year and, therefore the appellant is justified in debiting and claiming 1/5th of the total expenditure on bank's loan processing fees every year for 5 years. 3. The Ld. CIT(A) ought to have considered the fact that the total expenditure of Rs. 4,74,87,291/- for a loan of Rs. 25 crores for a period more than one year is of enduring nature and hence appellant has rightly spread the bank's processing fees over 5 years. 4. The Ld. CIT(A) has grossly erred in not allowing the expenditure of Rs. 94,97,458/- being 1/5th of the total expenditure of Rs. 4,74,87,291/- for the year under assessment although in the immediately previous expenditure of Rs. 94,97,458/ - wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned ACIT had allowed the 1/5th of the amount i.e. Rs. 94.97 lacs for the A. Y. 2010-11. However, he has changed his opinion and disallowed the same 1/5th i.e. Rs. 94.97 lacs during the year under consideration i.e., for the A.Y.2011-12. 5. By the impugned order, the CIT(A) confirmed the action of AO and assessee is in further appeal before us. 6. It was argued by learned AR that in case the learned ACIT wanted to disallowed Rs. 94.97 lacs for the A.Y.2011-12 treating it to be not the expenditure of the year, he should have allowed the full expenditure of Rs. 4.75 crores for the A.Y. 2009-10. He further contended that it is a gross injustice to the assessee that the expenditure though allowed in the immediately preceding year i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered view, once the expenditure is accepted as "Revenue Expenditure", then it is upto the assessee that whether to claim the expenditure in one year or to spread over the said expenditure as per the enduring benefit available with them. For this contention the decision of the Hon'ble Gujarat High Court in the Case of CIT vs. Gujarat State Fertilizer Chemicals Ltd. reported in 358 ITR 323 supported our view. In the case of Gujarat State Fertilizers the assessee has claimed deduction of corporate debt restructuring expenses of Rs. 2.57 crores on payment to financial consultants who provided their professional services in connection with the scheme of corporate debt restructuring by negotiating with the banks and financial institutions, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al contentions and found that during the year, the assessee has claimed an exempt income of Rs. 10,67,850/- under the head of "Dividend Income" received only from one company i.e., M/s. Tube Glass Container. 11. Contention of learned AR was that assessee was having sufficient interest free funds which have been used for the investment and no extra expenditure was incurred for earning the dividend income from M/s.Tube Glass Container. 12. We have considered rival contentions and found that the assessee has earned dividend income from one company only, the assessee does not require to incur any specific expenditure to maintain the investment portfolio. 13. Keeping in view the totality of facts and circumstances of the case, we direct AO to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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