Fee paid for renewal of cash-credit is revenue expenditure

Supreme Auto (India) Pvt. Ltd. Vs ITO (ITAT Indore) ITAT Indore held that the expenditure incurred for obtaining loan is a revenue expenditure. Accordingly, the fee paid for renewal of cash-credit is a revenue expenditure. Facts- During assessment-proceeding, Ld. AO issued notice u/s 133(6) to M/s V.E. Commercial Vehicle Limited and obtained confirmation of account. On the basis of response received, the Ld. AO found that M/s V.E. Commercial Vehicle Ltd. has shown a debit balance of Rs. 66,99,695/- in the account of assessee, whereas the credit balance shown by assessee was Rs. 68,71,375/-. Th...