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2003 (9) TMI 22 - HC - Income TaxDeduction of liability to pay premium on non-convertible debentures - Tribunal has allowed the claim of the assessee in a modified form. It held the liability to pay premium to be not contingent, but a revenue expenditure. However, it found that the amount is to be allowed proportionately over the period of redemption of debentures, i.e., to say, during the period the funds generated by issue of debentures are to be utilised by the company for its benefit - Tribunal is justified in law in holding that the premium payable on debentures was not a contingent liability and that it is allowable revenue expenditure - Tribunal is justified in law in directing to allow the claim of premium though proportionately over the period of redemption – Revenue appeal dismissed
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