TMI Blog1980 (9) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed in the original assessment. While completing the assessment the ITO not only disallowed the sum of Rs. 3,344 but also added a sum of Rs. 18,573 representing bank guarantee commission. On appeal the AAC upheld the reopening of the assessment and also the additions. It is against this order that the present appeal is filed before us. 2. As regards the reopening the ld., counsel for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be paid over a period on instalment basis on payment of a particular guarantee commission. The interest paid on the loan was allowed by the ITO but not the guarantee commission. The commission amount was treated by him as forming part of the cost of the machinery. 4. On going through the facts we find that the property in the machinery has already passed on to the assessee even at the beginn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses on account of guarantee commission should only be added to the cost of the machinery for the purpose of granting depreciation etc. This was accepted by the Court. There is also the further point that in the present case the business was a running concern and only as part of its day-to-day activity it had intended for purchase of extra frames. The sum of Rs. 7,194 is, therefore, to be clearl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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