2007 (7) TMI 222

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....rt was delivered by P. P. S. Janarthana Raja J.— These appeals are filed under section 260A of the Income-tax Act, 1961, by the Revenue, against the order of the Income-tax Appellate Tribunal, Bench "B", Chennai in I. T. A. Nos. 172 and 175(Mds)/98 dated August 23, 2004, raising the following common substantial question of law : "Whether, on the facts and circumstances of the case, the Tri....

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....was held as follows (page 222) : "This question pertains to the assessment years 1989-90 and 1992-93. For the relevant assessment years, the assessee claimed certain expenditure as debenture issue expenses. The Assessing Officer treated 60 per cent. of the claim of expenditure as capital expenditure and the balance 40 per cent. as revenue expenditure. Aggrieved by the same, the assessee filed a....

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....of debentures only and hence the expenses incurred on obtaining a loan is a revenue expenditure.  We accordingly uphold the claim of the assessee.' The Assessing Officer had bifurcated the expenditure and allowed only 40 per cent. as revenue expenditure, without any basis. The Tribunal correctly held that the disallowance of 60 per cent. is without any basis and the Assessing Officer was w....