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TMI Blog2007 (7) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... d there is no error or infirmity in the order of the Tribunal to warrant interference - 846 and 847 of 2007 - - - Dated:- 2-7-2007 - P.D. DINAKARAN and P.P.S. JANARTHANA RAJA JJ J. Narayanaswamy for the appellant. JUDGMENT The judgment of the court was delivered by P. P. S. Janarthana Raja J.— These appeals are filed under section 260A of the Income-tax Act, 1961, by the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebenture is an allowable deduction as revenue expenditure ?" 3. It is fairly stated that the issue stands covered in favour of the assessee, by this court judgment in the case of CIT v. South India Corporation (Agencies) Limited [2007] 290 ITR 217, wherein it was held as follows (page 222) : "This question pertains to the assessment years 1989-90 and 1992-93. For the relevant assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal expenditure on the reasoning that at the time of redemption of the debenture, the holders of the debentures were entitled to certain shares. The issue of shares is a future event which may or may not happen. At present, the expenditure incurred was on the issue of debentures only and hence the expenses incurred on obtaining a loan is a revenue expenditure. We accordingly uphold the claim of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture incurred on the issue of debentures is a permissible deduction under section 37 of the Act. Learned counsel appearing for the Revenue has not produced any material or evidence to take a different view. The reasoning of the Tribunal was based on relevant materials and evidence and there is no error or infirmity in the order of the Tribunal to warrant interference. In view of the same, no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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