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2022 (12) TMI 204 - AT - Income TaxCessation of liability of Foreign Currency Convertible Bond on the date of buy-back - Applicability of provisions of section 28(iv) and section 41(1) - differential amount between the cost price of the Foreign Currency Convertible Bond bonds minus the buy-back price of the Foreign Currency Convertible Bonds credited to the capital reserve by the assessee - amount collected by the company was shown under the head "Loan funds" as "Unsecured loan" - As submitted that as far as the issue of Foreign Currency Convertible Bond was concerned, neither provisions of section 41(1) of the Act nor section 28(iv) of the Act were applicable to the case of the assessee - HELD THAT:- As decided by CIT-A assessee has demonstrated with ample evidence that no part of the proceeds were utilised towards non-capital expenditure. The learned Commissioner of Income-tax (Appeals) has sustained the proportionate disallowance on an incorrect assumption of facts and he has simply discarded the certificate of the chartered accountant without any cogent reasons. Therefore, part sustenance by the learned Commissioner of Income-tax (Appeals), i. e., of Rs. 19.03 crores also needs to be deleted. The same is ordered accordingly. Therefore, in view of the detailed reasons as given in the preceding paragraphs no addition of account of Foreign Currency Convertible Bonds survives and the grounds of appeal filed by the assessee stand allowed whereas the grounds preferred by the Department stand dismissed.
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