TMI Blog2017 (3) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... Allowance of expenditure incurred on issue of Foreign Currency Convertible Bonds (FCCB) - Held that:- FCCBs expenditure incurred by it on the issue of bonds as on the date of its issue is expenditure incurred to obtain a loan. In such circumstances, even if the FCCB are convertible into equity at a later date, yet on the date of its issue, it is a loan. Therefore, expenditure incurred thereon is revenue in nature. See CIT v/s. Secure Meters Ltd. [2008 (11) TMI 66 - HIGH COURT RAJASTHAN ] - Decided in favour of assessee - Income Tax Appeal No. 1761 of 2014 - - - Dated:- 16-3-2017 - M. S. Sanklecha And A. K. Menon, JJ. Mr. Charanjeet Chanderpal with Ms. Namita Shirke and Ms. Swapna Tejale, for the Appellant Mr. Nishant Thakk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) It is an agreed position between the parties that the issue arising herein stands concluded against the Revenue and in favour of the Respondent-Assessee by the decision of this Court in CIT v/s. Pruthvi Brokers and Shareholders Pvt. Ltd., 349 ITR 336. (ii) In the above view, question (a) does not give rise to any substantial question of law. Thus, not entertained. 4 Re Question (b): (i) The Respondent-Assessee during the previous year relavent to subject Assessment Year has issued Foreign Currency Convertible Bonds (FCCBs). The Respondent-Assessee had claimed a deduction of ₹ 2.24 Crores being the expenses incurred for issuance of FCCBs. The Assessing Officer as well as the Commissioner of Income Tax (Appeals) [CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d our attention to the decision of the Delhi High Court in CIT v/s. Havells India Ltd., 352 ITR 376 wherein on an identical fact situation, the appeal of the Revenue was dismissed. In fact, Delhi High Court in Havells India Ltd. (supra) has observed as under: . . . . . . Though it prima facie appears that there are sufficient facts to indicate that what was contemplated was an issue of shares to the Mauritius company under the investor agreement which would result in strengthening of the assessee's capital base, having regard to the judgments cited on behalf of the assesssee, in which it has been held that despite indications to the effect that the debentures are to be converted in the near future into equity shares, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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