Prepaid Finance Charges Deductible in Year of Payment, Amortization Not Necessary: ITAT [Read Order]

Before ITAT, the assessee contended that under Section 37(1) of ITA, once it is established that the expenditure is for business purposes, there is no legal requirement to amortize the expense.
By Varda Marakkar - On August 28, 2024 12:21 pm - 3 mins read
ITAT - Prepaid Finance - Prepaid Finance Charges - Amortization - Amortization Not Necessary - itat about amortization - Finance - Finance Charges - tax news - taxscan

The Income Tax Appellate Tribunal (ITAT) in a recent case ruled that prepaid finance charges made for business purposes are deductible in the year of payment, and thus amortization is not necessary. The assessee/appellant,Cholamandalam Investment & Finance Co. Ltd., is a company engaged in financing and investment. Get a Copy of Income Tax Rules, Click…

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