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2006 (2) TMI 151 - HC - Income TaxDeduction u/s 37 - Premium payable on actual redemption of debentures in future years is to be spread over and part of it is allowable as a deduction in this assessment year? - HELD THAT:- Applying the ratio laid down in the case of Madras Industrial Investment Corporation Ltd. v. CIT [1997 (4) TMI 5 - SUPREME COURT] and in the context of the ratio laid down in the case of National Engineering Industries Ltd. v. CIT [1998 (9) TMI 65 - CALCUTTA HIGH COURT], whereunder it is held that there is no distinction between discount and premium, the discount on debentures as well as the premium payable on actual redemption on debentures in future years and the expenditure incurred for issue of such debentures are all held to be revenue expenditure, entitled to be spread over the period of debentures and consequently, allowable as deduction in a particular assessment year. Thus, we do not see any question of law much less a substantial question of law arises for consideration. Hence, finding no reason to interfere with the orders of the Tribunal, both the appeals stand dismissed.
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