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2017 (8) TMI 535 - HC - Income TaxRevision u/s 263 - claim of deduction for interest paid on Optionally Fully Convertible Debentures in terms of section 24(b) - debatable issue - Held that:- We find that the petitioner had issued debentures. The funds raised through such debentures were utilised for repayment of past loans. These loans were taken for the purpose of construction of building. This aspect, the petitioner pointed out to the Assessing Officer during the original assessment. Through the accounts the petitioner could establish the precise correlation between the debentures and repayment of past loans. This aspect, the Commissioner has not controverted in the notice for revision. The Assessing Officer after examining the issue accepted the assessee's claim for deduction under section 24(b) of the Act even with respect to interest paid on debentures which were utilised for repayment of past loans used for the purpose of construction of the building. The view of the Assessing Officer was certainly plausible, particularly, in view of clarification issued by the CBDT. It was therefore, not open for the Commissioner to take such order in revision. - Decided in favour of assessee.
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