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TMI Blog2020 (11) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... de for securing the use of money for a certain period and that it was irrelevant to consider the object with which the loan was obtained. Consequently, in the circumstances of the case, the expenditure was not in the nature of capital expenditure and was laid out or expended wholly and exclusively for the purpose of the assessee s business Thus we are of the view that the action of the authorities below in holding the expenditure as capital in nature is not sustainable. - Decided in favour of the assessee. - ITA No.1746/MUM/2019 - - - Dated:- 14-10-2020 - Shri Shamim Yahya, Accountant Member And Shri Ravish Sood, Judicial Member For the Appellant : None For the Respondent : Shri Uodal Raj Singh ORDER PER SHAMIM Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 8,30,9207- being Mortgage charges, which have been held as capital expenditure by the Ld AO, The appellant's main contentions are that the said expanses have been incurred for the purposes of acquiring business funds and hence the same is incurred wholly and exclusively 'for the purposes of business. The appellant has also submitted that such charges are revenue in nature and no enduring benefit has arisen from the same. In support of its claim the appellant has placed reliance on various judicial pronouncements as detailed above. The contentions- of the appellant have been considered carefully. From the submissions of the appellant it is observed that it is an admitted fact that during the year the appellant has availed certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d opinion that no fault can be1 found with the action of the Ld. AO in treating the expenses under consideration as capital in nature. Hence, the impugned disallowances of ₹ 21, 30,120/- being stamp-duty charges and ₹ 8,30,920/-being mortgage charges are CONFIRMED . 5. Aggrieved, the assessee is in appeal before us. 6. We have heard the learned DR and perused the material on record. We find that the issue is squarely covered in favour of the assessee by the decision of the Hon ble Supreme Court in the case of India Cements Ltd. vs. CIT 60 ITR 52. In this case the assessee obtained certain loan which was secured by a charge on the fixed assets of the company. It incurred expenditure like legal fees, registration fees, stam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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