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2022 (12) TMI 345 - AT - Income TaxDisallowance of premium payable on redemption of debentures - addition on account of claim of premium on non-convertible debentures on proportionate basis - assessee paid the entire amount due on redemption of such debentures along with premium in the relevant Financial Year and claimed a deduction for the premium payable made in the year of actual redemption of debentures - AO treated the same as future expenditure provisional in nature and not allowable [2012 (4) TMI 128 - BOMBAY HIGH COURT] HELD That:- the issue under consideration has already been decided by the co-ordinate bench in Assessee’s own case [2021 (9) TMI 743 - ITAT DELHI] - the moment the debentures were issued, the liability had arisen against the assessee which would constitute on expenditure allowable under section 37 of the Act. - What is important is that the liability to pay premium arises in the year in which the debentures were issued and could be proportionately spread over the period prescribed for maturity of such debentures. It matters little whether the debentures were redeemable at will or only upon maturity. Decided against the revenue.
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