https://www.taxtmi.com/caselaws?id=71562 The ITAT Pune held that evaluation fees paid by an assessee-company for obtaining a loan were deductible as business expenses, not part of the actual cost of assets acquired. Despite the loan being primarily for setting up the business, the Tribunal considered the loan a liability and allowed the evaluation fees as a business expenditure for expanding existing business activities. Relying on legal precedents, the Tribunal concluded that interest on borrowed capital is allowable for business purposes, leading to the deletion of the addition to the assessee's income and allowing the appeal. en-us Tue, 14 Dec 1999 00:00:00 +0530 Mon, 25 Apr 2011 16:36:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71562 The ITAT Pune held that evaluation fees paid by an assessee-company for obtaining a loan were deductible as business expenses, not part of the actual cost of assets acquired. Despite the loan being primarily for setting up the business, the Tribunal considered the loan a liability and allowed the evaluation fees as a business expenditure for expanding existing business activities. Relying on legal precedents, the Tribunal concluded that interest on borrowed capital is allowable for business purposes, leading to the deletion of the addition to the assessee's income and allowing the appeal. Case-Laws Income Tax Tue, 14 Dec 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71562