TMI Blog2013 (10) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - D. B. IT Appeal NO. 57 of 2012 - - - Dated:- 5-7-2013 - DINESH MAHESHWARI AND NARENDRA KUMAR JAIN-II, JJ. For the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firming disallowance of Rs.1,05,87,365/-. The other aspect related with this appeal with reference to the grounds urged is with regard to the expenses incurred by the assessee for issuing the bonds to the tune of Rs.12,74,949/-. The AO disallowed the claim in regard to this expenditure treating it to be of capital expenditure and added the same to the income of the assessee. The CIT(A) confirmed the action of the AO. The ITAT found the expenditure for raising funds through bonds being allowable as revenue expenditure with reference to the decision of this Court in the case of CIT v. Secure Meters Ltd. [2010] 321 ITR 611. 4. Seeking to question the findings of the ITAT in respect of the aspects aforesaid, the revenue has preferred this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s noticed that in the case of CIT v. Thirani Chemicals Ltd. [2007] 290 ITR 196, the Hon'ble Delhi High Court considered the argument if the ratio of the decision of Hon'ble Supreme Court in India Cements Ltd. (supra) stood nullified by introduction of Section 35D and while rejecting the contention and explaining the principles applicable observed as under: " ..There is, in our view, no merit in that contention. The circular in question, inter alia, says that expenditure incurred on the issue of debentures is an admissible deduction in the light of the decision of the Supreme Court in India Cements Ltd.'s case [1966] 60 ITR 52. It is true that India Cements Ltd.'s case [1966] 60 ITR 52 (SC) did not directly deal with expenditure incu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support of her contention that the ITAT has erred in holding that the expenditure incurred on account of issue of bonds was of revenue nature. However, on the facts and in the circumstances of the present case, with the 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 (supra) as also by the Hon'ble Delhi High Court in Thirani Chemicals Ltd. (supra). Hence, we are not persuaded to formulate the suggested question No.2 in the present appeal. 9. In our view, only the following substantial question of law arises for consideration in this appeal: "Whether on the facts and in the circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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