TMI Blog2019 (4) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee relating to assessment year 2004-05 [ 2019 (4) TMI 1321 - CALCUTTA HIGH COURT] interest payment was spread over the duration of the loan. Therefore, the front ends fee constituted interest liability of the assessee spread over a period of time. Obtaining the loan and paying interest to service it ensured long term benefit to the assessee. Hence, this expenditure was revenue and not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For The Respondent : Mr. J.P. Khaitan, Sr. Adv. Mrs. Nilanjana Banerjee, Adv. JUDGMENT MD. NIZAMUDDIN, J.:- Heard the learned counsel for the parties. This appeal of the revenue arises out of the impugned order of the Income Tax Appellate Tribunal dated 23rd November, 2007 relating to assessment year 2003-04. On the following sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue by giving detailed reasons. Accordingly this question is answered in negative and in favour of assessee and against the revenue. Now we deal with the first question. Grievance of the revenue against the Tribunal is against deletion of disallowance of the premium paid by the assessee on pre payment of loan by contending that the said expenditure is not allowable since it is capital in nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n allowing the aforesaid claim of deduction on payment of premium of pre payment of the loan to reduce its interest burden in view of falling interest rate. In our view the aforesaid expenditure incurred by the assessee by way of premium paid on pre payment of loan for reducing interest the liability cannot be called acquisition of any asset and cannot be treated as capital expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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