TMI Blog2008 (7) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ain the fully convertible debentures of sale debentures only to make profits – so these can’t be treated as non business transaction - service charges were allowable expenses u/s 37 as they were wholly and exclusively expended for the business - 918/2007, 919/2007, 920/2007 and 1034/2007 - - - Dated:- 21-7-2008 - MR. BADAR DURREZ AHMED and MR. RAJIV SHAKDHER, JJ. For the Appellant : Mr. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Tubes India Ltd. The assessee did not have the wherewithal at that that point of time to subscribe to the said offer. And, even its efforts to raise loans in the ordinary course did not materialise. Therefore, it entered into the said agreements with the aforesaid mutual funds. The agreements being that the mutual funds would undertake to subscribe to the fully convertible debentures subject t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was to help the sister concern by ensuring that the offer by the sister concern was fully subscribed and not for the business purposes of the assessee itself. 3. The tribunal, after considering the material on record and the arguments advanced on both sides, came to the conclusion that the substance of the agreements between the assessee and the mutual funds was in the nature of a financing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er subscribed by 15 %, it is obvious that the argument advanced by the learned counsel for the appellant that the whole object behind the subscription was to ensure that the sister concern's issue was fully subscribed, cannot be accepted. The tribunal's finding to this effect cannot be faulted. 5. The tribunal also found that the course of action adopted by the assessee was because it appeared ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
