2006 (10) TMI 131

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.... Revenue has filed this appeal under section 260A of the Income-tax Act, 1961, against the order dated November 28, 2002, made in I.T.A. No. 936(Mds)/97 on the file of the Income-tax Appellate Tribunal, Madras. When the appeal came up for hearing, this court has admitted the same on the following substantial questions of law: "(i) Whether, on the facts and circumstances of the case, the Tribuna....

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....om the Government as a revenue receipt and also disallowed the expenditure of "front end fee" as capital expenditure. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the appeal and set aside the order of the Assessing Officer. Aggrieved by the same, the Revenue filed an a....

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....rther submitted that the Tribunal erred in following the ratio of the Supreme Court judgment in the case of CIT v. Sivakami Mills Ltd. [1997] 227 ITR 465, wherein the Supreme Court dealt with guarantee commission and not with "front end fee" or loan processing charges. Heard the counsel. During the year of account the assessee obtained sanction for a term loan of Rs. 820 lakhs from the IDBI. Wh....