TaxTMI 
TaxTMI 
2017 (11) TMI 850
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 10,52,000/-: On the facts and in the circumstances of the case, the Appellant submits that the Hon. Commissioner of Income Tax (Appeals) has erred in upholding the disallowance of the professional fees of Rs. 10,52,000/- made by the Learned Assessing Officer. The Appellant submits that the professional fees of Rs. 10,52,000/- be allowed. b. Stamp Duty of Rs. 2,28,4007- and Registration Charges of Rs. 1,28,4507-: On the facts and in the circumstances of the case, the Appellant submits that the Hon. Commissioner of Income Tax (Appeals) has erred in upholding the disallowance of the stamp duty of Rs. 2,28,400/- and Registration Charges of Rs. 1,28,450/- made by the Learned Assessing Officer. The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... & registration charges were paid were recorded. 3. The A.O. was not satisfied and made disallowance of the impugned expenses by observing as under: The contention/submission of the assessee company is considered but not found acceptable for the reasons as the said expenditure are not revenue expenditure and hence not allowable u/s 37(1) of the I.T. Act. Also, interest on delayed payments to the parties and interest on TDS are in penal nature cannot be allowed as business expenditure, therefore, same are also disallowed. Penalty proceedings initiated u/s 271(l)(c) r.w.s. 274 of the I.T. Act separately. 4. Against the above order, the assessee appealed before the ld. CIT(A). 5. Re: Professional fees: As regards the payme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tters, etc. This by no stretch of imagination can be considered to be expenditure of enduring benefit. Furthermore, if the expenditure is related to setting up of any property, the expenditure needs to be capitalized and the assessee be accordingly given the depreciation thereon or if the property is under development, the expenditure needs to be added to the cost of the project. Hence, I remit this issue to the file of the A.O. to examine the issue and decide as per the direction given hereinabove. 9. Stamp duty and registration charges On this issue, the ld. CIT(A) noted the assessee's submissions as under: b. Stamp Duty of Rs. 2.28,400/-: During the year under consideration, the Appellant incurred Stamp Duty....
X X X X Extracts X X X X
X X X X Extracts X X X X
....enue expenditure. When the assessee had made the expenditure on account of stamp duty and registration charges, as the incentive scheme by duly advertising the same, I do not see any reason as to how the same cannot be treated as revenue expenditure. This expenditure is in relation with the flat which the assessee deals in and the same is its stock-in-trade. Hence, the expenditure related to the sale of the item in which the assessee deals in, can by no stretch of imagination be deemed to be capital expenditure. Accordingly, I set aside the orders of the authorities below on this issue and decide the issue in favour of the assessee. 12. Re: Interest for delayed payment As regards the issue on interest of delayed payments to parties am....