Processing fees paid to bank for increase in working capital overdraft facilities is revenue expense

DCIT Vs M/s. QRG Central Hospital & Research Centre Limited (ITAT Delhi) Assessee claimed expenditure of Rs.1,05,000/- incurred on account of processing fees paid to IDBI Bank Ltd. for increase in working capital overdraft facilities as revenue expenditure. When admittedly there is no capital creation with the loan facilities availed of by the assessee, the working capital overdraft facility cannot be kept under the category of capital expenses, rather working capital overdraft facility “is oftenly used to run day-to-day business”. Hence, the ld. CIT (A) has rightly deleted the additio...