Fees on Term Loan for Plant Acquisition is allowable Business expense

Brace Iron & Steel Pvt. Ltd. Vs Addl. CIT (ITAT Delhi)  A.O. disallowed the payment of up-front fee of Rs.1,10,82,175/-on the ground that the assessee was required to pay the same as a lump sum one time non-refundable fee for processing of the loan prior to the execution of the Loan Agreement, therefore, it is a capital expenditure. We find the Ld. CIT(A) upheld the action of the A.O. on the ground that the assessee has neither carried-out any business operation nor utilised the machinery for any business purposes. According to him the claim itself is under question rather than the nature...