ACIT Cir 4(2), Mumbai vs. Gupta Synthetics Ltd, Mumbai
In the result, the appeal filed by the revenue is treated as partly allowed for statistical purposes
ITA 1009/MUM/2011[2007-08]Status: DisposedITAT Mumbai09 Dec 2015AY 2007-08
Bench: S/Shri B.R.Baskaran & Shri Sandeep Gosainआयकर अपीऱ सं./I.T.A. No.1009/Mum/2011 (निर्धारण वर्ा / Assessment Year :2007-08) Asstt. Commissioner Of बिधम/ M/S Gupta Synthetics Ltd., Income Tax, 4(2), 326, Sardar Gruh Building, Vs. Room No.642, 6Th Floor,, 198, L T Road, Ayakar Bhavan, M K Road, Mumbai-400002 Mumbai-400020 स्थायी ऱेखा सं./ Pan : (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. स्थामी रेखा सं./जीआइआय सं./Pan. :Aaacg8559P
For Appellant: Ms.Anu Krishna AggarwalFor Respondent: Shri Satish R Mody
…ctible. Similarly, where upfront frees was paid for obtaining a loan, though for purchase of machinery, will be deductible as a revenue expenditure where, such machinery was used for running a business, it was so held in CIT V/s Sri Meenakshi Mills Ltd (2007) 290 ITR 107 (Mad). In view of these decisions and the case law cited by the Authorities Representative, I am convinced that such expenditure is allowable as a revenue expenditure. Therefore, the AO is directed to delete the addition made in this regard.” We heard the parties on this issue and we are of the view that the ld. CIT(A) has taken a judicious view…
