TMI Blog2023 (6) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of business to the extent they are utilized for repayment of earlier loans or infused as fresh funds for the current business of the assessee. We deem it appropriate to restore this issue back to the file of AO for the limited purpose to examine the extent of OCDs utilized for payment of the earlier loans (including loan from the bank and other group concerns) taken for the Aurora Project . To the extent OCDs are used for repayment of old loans taken for the purpose of assessee s business, premium on redemption of debentures is to be allowed for capitalization in work-in-progress. - ITA NO. 7866/MUM/2019 - - - Dated:- 23-1-2023 - SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER For the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Progress of Aurora Project , in the respective Assessment Years. The assessee is following Project Completion Method to recognize the profits from the said project. Accordingly, the appellant computed its Work-in-Progress as on 31/03/2016 Rs.156,57,16,308/- including debenture redemption premium. The funds raised through OCDs were utilized to repay the loan from Central Bank of India and loans from various group companies for Aurora Project . The ld. Authorized Representative for the assessee in order to substantiate that the assessee had taken loan from its group companies for Aurora Project referred to the ledger account of Atithi Building Commodities Pvt. Ltd. at page 33 and 50 of the Paper Book. The ld. Authorized Representative fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oject , therefore, premium on redemption of debentures can be disallowed to the extent OCDs not utilized for the purpose of Aurora Project . 4. Per contra, Shri Ajay K.R.Kesari representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee. The ld. Departmental Representative submits that no work was being carried out in Aurora Project since Financial Year 2005-06, hence, there was no bonafide reason for the assessee to issue OCDs for the said project. Even after issuance of OCDs no substantial work has been carried out for completion of the said project. 5. We have heard the submissions made by rival sides and have examined the orders of authorities below. The fact of issuance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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