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TMI Blog2019 (8) TMI 1708X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of business for the reason that on account of these loans no capital asset has been created by incurring such expenditure. We noted that even Hon ble Supreme Court in the case of India Cement Ltd.[ 1965 (12) TMI 22 - SUPREME COURT] held that the stamp duty, registration fee, lawyers fee etc., paid for obtaining loan was eligible for business expenditure. We noted that the aforesaid amounts were reflected in the schedule 12 of the balance sheet in the Revenue s account as interest and finance charges. Also the assessee has suo moto capitalize the expenses which were to be capitalized as is evident from Schedule 13 of the balance sheet, which is in Revenue s account. We noted from the copies of the agreement that these expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p duty and service fees without appreciating that the said expenses were capital in nature. 3. From the above, it is clear that the only ground No. 8 is to be adjudicated. 4. Briefly stated facts are that the AO noted in the assessment order that the assessee company has incurred expenditure on account of stamp duty and legal charges on loan taken from construction of capital assets, which are to be capitalized in the books of account and accordingly, expenditure amounting to ₹ 41,95,000/- on account of stamp duty and legal charges are capital in nature and cannot be allowed as deduction under section 37(1) of the Act. The AO also directed the assessee to capitalize the sum as and when the same is put to use. Aggrieved, asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case. We noted that the assessee has incurred the following expenses and the narrations are as under: - a. Stamp duty ₹ 30,00,000/-. This comprises of several payments made towards stamp duty paid for availing various loans from REC/ PFC. The copies of JV alongwith other relevant office notes evidencing the said payment were enclosed by the appellant. b. Service Fees- ₹ 11,94,598/-. This comprises of payments towards service fees for trusteeship for MSEB Bonds to IL FS Trust company. Photo copies of JV alongwith other relevant office notes evidencing the said payments were also enclosed. 7. We noted from the above that the assessee is able to prove that these expenses were routine exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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