17 December 2009
My Client is running a Partnership Firm. The Firm, during the financial year 08-09, has purchased Factory Building for Rs.25.00 lakhs for its business purpose. The Firm has got Rs.20.00 lakhs from a bank loan for purchase of Factory building. Processing fee Rs.20000/- has been charged by the bankers for granting loan. (i) Can the processing fee be added with cost of the Building or (ii) Can the processing fee be charged with Profit & Loss A/c as an expenditure.
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