This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Expense on payment of guarantee commission is revenue expenditure
Case Law Details
- Case Name
- Bajaj Tempo Ltd. Vs The Commissioner of Income Tax (Bombay High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Bombay High Court
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
The only question is whether the guarantee commission paid to the bankers for securing timely repayment of credit facility and loan from financial institutions for the purpose of machinery and equipments is revenue expenditure.
The Division Bench of this Court in case of Kinetic Engineering Ltd (supra) was dealing precisely with the said issue, wherein, in the said case, the Assessee had to pay guarantee commission for securing timely repayment of credit facility obtained for the purpose of machinery and equipments required for running business. This Court considering various judgments of the...
