2012 (10) TMI 54

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....f Rs.1,00,000/- made by the Ld. A.O. while considering the admission fees paid by the appellant as capital expenditure instead of revenue expenditure without looking to the facts of the case of the appellant and without considering the nature of admission fees paid by the appellant to the exchanges and is covered by the decision of Hon'ble Mumbai High Court. 2. The Ld. CIT (A) has erred in law and on facts while confirming the addition made of Rs.35,705/- by the Ld. A.O. while considering that the appellant has paid interest on new vehicle purchase before putting to use of the vehicle, without considering that the new vehicle has been purchased during the year and the loan has also been obtained during the year after putting to use of th....

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..... 5. During the course of assessment proceedings it was noticed by the A.O. that the assessee had paid Rs.1,20,000/- as commodity fees. The assessee was asked to provide the details of the same. The assessee submitted that it is a membership fees paid to National Multi Commodity Exchange of India. It includes Rs.1 lac towards Membership fees and Rs.20,000/- as Annual Fee. The A.O. held that though the expenses were for the purpose of business but nature of expense was such that it was non-recurring in nature and resulted in an enduring benefit to the assessee. He therefore, considered the same to be capital in nature and disallowed Rs.1,00,000/-.Aggrieved by the decision of the A.O. the assessee preferred an appeal before the CIT (A). ....

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....he view that the membership fees of National Commodity Exchange of India cannot be considered to be of enduring nature and therefore the action of the A.O. in disallowing Rs.1 lacs holding it to be of capital nature was uncalled for. We therefore, direct the A.O. to delete the addition. Thus this ground of appeal of assessee is allowed. 11. Second ground is with respect to the purchase of vehicles. The A.O. noticed that the assessee had purchased new vehicles for which the assessee had taken loan during the year. The interest of Rs.1,37,600/- paid for the same was claimed as Revenue expenditure. The A.O. held that since the new vehicle was put to use during the month of September, 2007 and since the interest was paid before the use of th....