Payment of guarantee fee to Gujarat Government is revenue expenditure

Gujarat State Electricity Corporation Limited Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that payment of guarantee fee to the Govt. of Gujarat in consideration of guarantee issued by it for repayment of unsecured loan is revenue expenditure. Facts- Revenue has preferred this present appeal contesting that CIT(A) has erred in deleting the addition made on account of disallowance of claim of guarantee fees paid to Government of Gujarat. Notably, AO observed that the assessee paid guarantee fee to the Govt. of Gujarat in consideration of guarantee issued by it for repayment of unsecured loan. A...