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2003 (3) TMI 44 - HC - Income TaxPremium on the redeemable debentures - "Whether, Tribunal has erred in deleting the addition of Rs. 54,75,000 made on account of 1/5th (sic) of premium on the redeemable debentures without considering the fact that no liability had accrued during the year under appeal and it was a contingent liability which was payable only after the expiry of ten years?" - There is nothing to indicate alterations of terms and conditions during the subsistence of the issued convertible debentures during the assessment year in question. Secondly, in the annual reports of the company and also in the audit reports given by the auditors, it has been certified that zero interest unsecured redeemable convertible debentures of Rs. 100 each redeemable after ten years at a premium of 100 per cent. had been issued during the assessment year in question. There is no reason for us to discard this note of the auditor. Even in the assessment order, no reasons have been given by the Assessing Officer for discarding this note of the auditors. Lastly, we may point out that even assuming for the sake of argument that the borrower had a discretion to change the terms of the issued debentures, there is nothing in the record to show that during the assessment year in question the borrower had exercised such a discretion - we answer the above quoted question in the affirmative, i.e., in favour of the assessee and against the Department
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