Debentures, whether fully or partly or optionally convertible, ...

Interest on Debentures Deductible as Business Expense Until Conversion, Treated as Debt for Tax Purposes.

February 15, 2016

Case Laws Income Tax AT

Debentures, whether fully or partly or optionally convertible, are nothing but debt till the date of conversion and any interest paid on these debentures is allowable as normal business expenditure - AT

View Source

← Previous Next →

Debentures, whether fully or partly or optionally convertible, ...

Interest on Debentures Deductible as Business Expense Until Conversion, Treated as Debt for Tax Purposes.

February 15, 2016

Case Laws Income Tax AT

You may also like:

Taxability of interest income - ‘Interest on bank deposits, inter-corporate deposits, debentures, from sister concerns and ‘other interest - the surplus money, unless...

ITAT upheld revision under s.263 regarding taxation of accumulated interest on debentures converted to equity shares. Assessee's contention of following cash system and...

Allowable business expenses - There is difference between commencement of the business and setting off of the business. All the expenses incurred pre-commencement are to...

Nature of Interest income - first ground of appeal of the assessee for treating expenses to the amount as revenue expenditure is dismissed. However, the alternative...

Expenses of Group Companies - Can a deduction be allowed for the expenditure incurred by appellant to meet the liability of the another company and for the debts written...

Interest on securities - Once it is accepted in the regular assessment that interest paid by the assessee was not the debenture interest, it was not open to the ITO...

The Kerala High Court disallowed interest expense claimed by the appellant u/s 36 of the Income Tax Act as it was incurred on a loan used to purchase agricultural land...

Allowability of interest on Compulsorily Convertible Debentures (CCDs) for period before conversion - RBI policy of FDI is governed by future repayment obligation and...

The assessee claimed exemption u/s 10(23G), and the disallowance u/s 14 concerning exempt income was disputed. It was held that the assessee had sufficient interest-free...

Interest income earned from fixed deposits created as margin for availing business loans was rightly treated as business income and netted off against interest...

TP adjustment - Recharacterising the compulsorily convertible debentures (`CCDs') as equity shares - till the date of conversion, for allowability of interest u/s 36 (1)...

Recovery of premium dues, interest, default interest, penal interest, interest overdue etc. - priority of charges - The tribunal analyzes the relevant clauses of the...

Correct head of income - income earned out of sale of property - business income or capital gains - when the asset was converted into stock-in-trade - the assessee has...

Disallowance of interest expenses - assessee has made contradictory submissions before the learned CIT (A) and has not furnished the required details of the interest...

The NCLAT held that Compulsory Convertible Debentures (CCDs) issued by the Corporate Debtor constituted a 'financial debt' u/s 5(8) as the transaction involved time...

Quick Updates: