Deduction of processing fees for purchase of business assets is allowable

Crayons Advertising (P) Ltd Vs DCIT (ITAT Delhi) ITAT Delhi held that processing fees for purchase of business assets is allowable as deduction as the loan has been taken for purchase of assets which are used for the business of the assessee. Facts- AO noted that the assessee has debited processing fees of Rs.25,74,864/- under the head ‘Interest & Finance Costs’. Upon AO’s enquiry, it was submitted that 7,74,864/- was paid as processing fees for purchase of business assets and the same is allowable as the loan has been taken for assets used for the business of the assessee. AO was of...