respect of capitalization of
professional fees capitalized of certain expenses, FCCB Premium and
FCCB Issue Expenses,"
5. "On the facts ... erred in deleting the addition by way of disallowing FCCB
Premium."
6. "On the facts and in the circumstances of the case
equivalent to US$ 300 million by issue of Foreign
Currency Convertible Bonds (FCCB). The issue date of bond was 10.10.06
which was matured ... FCCB means a bond expressed in
foreign currency, the principal and interest in respect of which is payable in
foreign currency, issued by an Issuing
expenditure on non-
convertible debentures of ₹.39.61 crores and interest expenditure on
FCCB of ₹.27.57 crores to tonnage business. Ld. Pr.CIT further observed ... related to NCD and FCCB respectively, which should have been
allocated to tonnage as well as non-tonnage business in the ratio of turnover
2016
Assessment Year: 2012-13
coupon 'foreign currency convertible bonds' (FCCB) of USD 275 million with
the tenure of five years redeemable ... redeemed @ 139.37% of the principal amount. As per the terms the FCCB
holders had an option to get the bonds converted into equity shares with
Disallowance of premium on FCCB Rs.55,44,94,544/-
4. Disallowance under section 14A Rs. 3,64,12,003/-
4. The Assessing Officer also ... disallowance of weighted deduction under section 35(2AB) ,
disallowance of premium on FCCB and disallowance under section 14A . With
regard to the adjustment made
assessee to explain as to why interest income was
adjusted against the FCCB issue expenses and interest paid and that in
terms of the judgment ... regards assessee's alternate
claim of interest paid on FCCB funds against the interest income, the
CIT(A) denied the same by observing that
disallowed in light of failure to establish the
genuineness of FCCB funds in the first place.
2. The CIT (A)'s order is contrary ... thereby making
additions in the normal computation of income on account of
FCCB issue expenses and interest on FCCB.
Aggrieved by the order
were incurred in connection with the issue
of foreign currency convertible bonds (FCCB).
The Assessing Officer noticed that the assessee had incurred expenses of
identical ... case of Prime Focus Ltd., the Tribunal
observed that the FCCB is akin to borrowings made by issuing debentures and
both of them are different
Stamp Duty on issue of Bonus Shares
E Expenditure on issue of FCCB 3,15,063
Bank charges-FCCB 122,179
FCCB Bonds ... Premium payable on 'Foreign Currency Convertible Bonds'(FCCB)
Rs. 5,39,94,814/-
ITA No. 8597/Mum/2010
5
On the facts
Strides Arcolab Ltd, Navi Mumbai vs Asst Cir 10(3), Mumbai on 8 June, 2018
