ITAT upholds Deletion of E-stamp Duty Expense Addition for Dish Infra Services' NCD Issuance [Read Order]

The Two member bench of Delhi Income Tax Appellate Tribunal (ITAT) upheld the  deletion of addition made on account of expenditure incurred on e-stamp duty expenses paid towards Non-Convertible Debenture issued by the Dish Infra Services.

The Assessee , Dish Infra Services Pvt.Ltd engaged in the business of  Dish installation from small trade partners, EPRS recharge collection , security deposits from distributors, security deposits from corporate customers and advances from Dish Care center for activation scheme and from “Dish TV India Ltd.”

During the assessment proceedings the AO made disallowance of Rs . 40,00,020/- made under section 37 by the AO on account of disallowance of e-stamping expenses incurred for issuance of debenture for raising funds , after introduction of section 35D o f the Income Tax Act.

Aggrieved by the order the assessee filed an appeal before the CIT(A), who deleted the addition. Hence the revenue filed another appeal before the tribunal.

During the adjudication the bench relied upon the decision of  High Court in the case of Thirani Chemicals Ltd observed that expenditure incurred on the issue of debentures will be a permissible deduction notwithstanding the introduction o f Section 35D.

After reviewing the facts the ITAT bench of Astha Chandra, (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member)  upheld the  deletion of additions made on account of expenditure incurred on e-stamp duty expenses paid towards Non-Convertible Debenture issued by the Dish Infra Services.

Vivek Sarin, counsel appeared for assessee and Sapna Bhatia counsel appeared for revenue.

To Read the full text of the Order CLICK HERE

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