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Commission paid for obtaining bank loan

This query is : Resolved 
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(Querist)
02 August 2010 Hi,

Is the commission paid by the company/any other to consultants( like CA) or other mediators while obtaining bank loan is allowable u/s 37(1) of incometax Act? or this expenditure is a nature of offence /prohibited under law?

solve my doubt with proper reason.

thanks & regards

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Aditya Maheshwari

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Aditya Maheshwari (Expert)
02 August 2010 It is an allowable expenses as it is paid for obtaining loan which is to be used for business purpose. Hence allowable.
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Ratan Sharma

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Ratan Sharma (Expert)
02 August 2010 Agree with expert. Payment of commission is not prohibited by law.
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