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2019 (8) TMI 1615 - HC - Income TaxDisallowance of expenses on the issue of Foreign Currency Convertible Bond - expenses incurred for the issue of FCCB as in capital in nature? - HELD THAT:- It is an agreed position between the parties that this issue raised herein now stands concluded in favour of the Assessee and against the Revenue by the decision of this Court in CIT v/s. M/s. Faze Three Ltd. [2017 (3) TMI 1390 - BOMBAY HIGH COURT] as placed reliance upon the decision of Secure Meters Ltd. [2008 (11) TMI 66 - HIGH COURT RAJASTHAN] and Havells India Ltd. [2012 (5) TMI 449 - DELHI HIGH COURT] to hold that the expenses incurred on issue of FCCB is an expense for raising a loan, therefore, the expense is revenue in nature. It observed that the Revenue has not shown any reasons as to why this Court should take different view in this case from the view taken by the various High Courts in the country on an identical issue. Addition of assignment of loan claimed as short term capital loss - loss arise because of lesser capital amount received and not on sale of capital gain and so cannot be equated to the short term capital loss - ITAT deleted the addition - HELD THAT:- It is an agreed position between the parties that the above decision passed today in case of M/s. Siemens Nixdorf [2019 (9) TMI 199 - BOMBAY HIGH COURT] would apply to the present facts - No substantial question of law. Disallowance u/s.14A to 5% of the exempt income earned by the assessee - HELD THAT:- Tribunal restricted the disallowance on the reasonable basis as mandated by Section 14A of the Act to 5% of the exempt income - This view of the Tribunal being in accord with the view of the Apex Court in Essar Teleholdings [2018 (2) TMI 115 - SUPREME COURT] the question as framed does not give rise to any substantial question of law. Thus, not entertained. Appeal admitted on question B - Disallowance of expenses on the issue of Foreign Currency Convertible Bond on the interpretation of DTAA
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