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 The ACIT, Central Circle-2, Room No.323, 3rd Floor, ARA Centre, Jhandewalan Extn., New Delhi. Vs. M/s. Majestic Properties (P) Ltd., 1/18B, Asaf Ali Road, New Delhi.a
 DCIT, Circle-Najibabad, Wahid Nagar, Najibabad Vs. Bijnor Urban Co-operative Bank Ltd, Civil Lines, Bijnor
 Harish Kumar, (Huf), 5/21, Shanti Niketan, New Delhi – 110 021 Vs. Dcit, Circle 34(1), New Delhi Room No. 804, 8th Floor Bhawan, Civic Centre, New Delhi – 110 002
 M/s Raman Kumar Sawhney, New Delhi. Vs. ITO, Ward-50(3), New Delhi.a
 M/s. T. V. Today Network Limited F-26, Connaught Place, New Delhi Vs. Addl. CIT Range- 16 New Delhi
 M/s Bhandari Fibretech Pvt.Ltd., S-20, Okhla Industrial Area, Phase-2, Vs. Income Tax Officer, Ward-4(4), New Delhi.
 45 LPA-Opening Associate CFO
 ITD-ITD CEM JV Vs. Commissioner Of Trade & Taxesa
 Chetan Sabharwal Vs. Assistant Commissioner Of Income Tax, Circle 28 (1)
 DCIT, Central Circle-4, New Delhi Vs. M/s. Abhisar Buildwell (P) Ltd., 1711, S.P. Mukharjee Marg, Delhi
 ACIT, Circle-22(2), Room No.226, 02nd Floor, C.R. Building, I.P. Estate, New Delhi Vs. M/s Schneider Electric India (P.) Ltd. 9th Floor, Tower C, Building No.10, DLF Cyber City, Phase-II, Gurgaon,

Haryana State Road & Bridges Development Corporation Ltd vs. CIT (P&H High Court)
October, 10th 2016

S. 37(1): While expenditure for purchase of a capital asset is capital expenditure, guarantee commission to acquire the asset on installment terms is revenue expenditure

Expenditure incurred for the purchase of the machinery was undoutedly capital expenditure; for it brought in an asset of enduring advantage. But the guarantee commission stands on a different footing. By itself, it does not bring into existence any asset of an enduring nature; nor did it bring in any other advantage of an enduring benefit. The acquisition of the machinery on installment terms was only a business exigency. If interest paid on a credit purchase of machinery could be held to be revenue expenditure, we fail to see how guarantee commission paid to a bank for obtaining easy terms for acquisition of the machinery could be regarded as capital payments (Sivakami Mills Ltd. Vs Commissioner of Income Tax, [1979] 120 ITR 211 approved in Commissioner of Income Tax Vs Sivakami Mills Ltd. [1997] 227 ITR 465 followed. Chhabirani Agro Industrial Enterprises Ltd. Vs Commissioner of Income Tax [1991] 191 ITR 226 is not good law)

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