9911796707
TMI Blog2016 (9) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... . Income Tax Appeal No. 94/2006, 354/2005, 87/2006, 92/2006 - - - Dated:- 20-9-2016 - K. S. Jhaveri And Banwari Lal Sharma, JJ. For the Appellant : R B Mathur For the Respondent : Suneel Nath, Shivangshu Naval, Archit Bohra ORDER 1. These four appeals are preferred by the Department against the order of the Tribunal whereby the Tribunal has decided the issue against the Department. 2. The brief facts of the case are that the assessee is public limited company engaged in the business of manufacturing and sale of Denim Fabric. The assessee has claimed revenue deduction on issue of fully convertible debenture during the relevant previous assessment year but the AO has not allowed the claim by observing that issue of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owards interest/financial expenses and bank charges as revenue expenditures when the said expenditures were pertaining to interest and bank charges which were pre-operative in nature and were paid to the financial institutions against loan obtained for installing the unit and were enduring in nature? 3. Counsel for the appellants contended that the view taken by the Tribunal is contrary to the decision of the Supreme Court. 4. However, counsel for the respondents Mr. Sunil Nath has relied upon the following decisions: 1) Commissioner of Income Tax Vs. Havells India Ltd. [2013] 352 ITR 376 (Delhi) 2) Commissioner of Income Tax Vs. Secure Meters Ltd. [2010] 321 ITR 611 (Raj) 3) Commissioner of Income Tax, Udaipur Rajasthan Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P H) 20) Commissioner of Income Tax, Large Tax Payers Unit Vs. Indian Railway Finance Corporation Limited (2014)326ITR548 (Delhi) 5. However, in view of the decision of this Court in Secure Meters Ltd. [2010] 321 ITR 611 (Raj) (supra) more particularly holding as under: At this stage it was contended by the learned Counsel for the Revenue, that a distinction should be drawn between the convertible and nonconvertible debentures, inasmuch as if the debenture is converted into shares, then it partakes the character of capital, and in that event, the expenditure, and would not be revenue expenditure, and would be capital expenditure. Learned Counsel for the assessee informs, that though it has not come on record so far, but as a matt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
