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2012 (4) TMI 128 - HC - Income TaxPremium paid on redemption of debentures capital expenditure vs revenue expenditure - NCD issued in F.Y. 1984-85, liable to be redeemed in F.Y. 1991-92 at a premium of ₹ 15 lakhs - AY 1992-93 Held that:-Amount paid towards premium is the liability which the assessee incurred for the purpose of its business in order to obtain the use of the funds for the period covered by the issue of NCD. Therefore in view of decision in case of Madras Industrial Investment Corporation Ltd v CIT (1997 (4) TMI 5 - SUPREME Court) actual premium paid upon the redemption of the debentures would have to be classified as revenue expenditure Decided in favor of assessee. Set off of short term capital loss against short term capital gain arising on sale of debentures and units - deduction u/s 80M without adjusting the loss on sale of shares Held that:- Same has been decided in favor of assessee in view of decision in case of CIT Vs. Walfort Share and Stock Brokers P. Ltd. (2010 (7) TMI 15 - SUPREME COURT) Deletion of addition by Tribunal in value of inventory and goods in process made by A.O Held that:- Matter is restored back to Tribunal for deciding afresh on the finding that there was no independent application of mind by the Tribunal.
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