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2013 (10) TMI 285 - HC - Income TaxNature of expenditure incurred on account of issue of bonds - revenue expenditure or capital expenditure – Held that:- Funds having been raised precisely with issuance of secured redeemable non-convertible bonds, we find no reason to take any view different than that taken by this Court in Secure Meters Ltd's case [2008 (11) TMI 66 - HIGH COURT RAJASTHAN] as also by the Hon'ble Delhi High Court in Thirani Chemicals Ltd. [2005 (12) TMI 86 - DELHI High Court], wherein it has been held that expenditure incurred on the issue of debentures will be a permissible deduction notwithstanding the introduction of Section 35D - Issue of debentures for expansion of an existing business, the expenditure incurred on the same must be amortised - Tribunal was, in that view, perfectly justified in holding that the expenditure was a permissible deduction and accordingly deleting the additions made by the Assessing Office – Decided against the Revenue. Whether on the facts and in the circumstances of the case, the ITAT was legally justified in reversing the findings of the CIT (A) and deleting the disallowance of Rs.1,05,87,365/- provided for contractual obligation in the return which was not allowable being contingent /unascertainable liability? - Appeal admitted.
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