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TMI Blog2010 (1) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... end of the 4th year from the date of allotment to get redemption amount of Rs.200/- per OCPN or to convert into 20 equity shares of Rs.10/- each at par. The assessee has claimed a sum of Rs.4,47,958/- as OCPN, premium amount written off in the P/L Account on the grounds that the amount is nothing but the cost or compensation of using the borrowed money for four years and is accordingly in the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss. The assessee issued 21800 Optionally Convertible Premium Notes (OCPN) at Rs.100/- each on 15.4.1995 and raised loan of Rs.21.80 lakhs. These OCPNs were redeemable at the expiry of four years at Rs.200/- per OCPN. However, OCPN holders had an option at the end of the 4th year from the date of allotment to get redemption amount of Rs.200/- per OCPN or to convert into 20 equity shares of Rs.10/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed as follows: "During the course of hearing, the ld. D.R. Conceded that the above issue is covered in favour of the assessee, as the Tribunal in I.T.A. No. 613/Alld/99 for assessment year 1996-97 in the appeal filed by the department vide its order dated 11.5.2005 has confirmed the action of the ld. C.I.T. (A) that the total amount so payable by the assessee on the redemption of OCPNs is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he department." Learned Standing Counsel is not able to show that the revenue has filed any appeal against the order of the Tribunal for the assessment year 1996-97. The Division Bench of the Calcutta High Court in the case of Universal Cables Ltd. v. Commissioner of Income Tax, reported in 243 ITR-371 following the decision of the Apex Court in the case of Madras Industrial Investment Corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X
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