Allowability of Loan Processing Charges

Processing charges paid on purchase of assets will be capitalised

It should be remembered that processing charges are not paid for the asset , its paid for the sanction of the loan for acquiring the asset . I think the bank charges processing fees before the sanction of the loan in mega cases . what if the loan is not sanctioned ?

I think its a revenue expense cos of inclusion in defintion u/s  sec 2(28A)

AS 16 advises that borrowing costs have to be capitalised .so it becomes a lil dicey .

I couldnt locate any case law relating to this . If anyone finds any proper solution pls let me know , Thanks