Aamer Pacific P. Ltd., .. ` 39,08,79,350
` 39,30,02,950
FCCB Issue Expenses ... were invoked and that amount was disallowed.
11. The FCCB issue expenses were incurred in connection with issue of
Foreign Currency Convertible Bonds
under normal provisions in view of the following
additions/disallowances: -
i) FCCB issue expenses `28,58,28,246/-
ii) Legal and professional fees ... deduction of withholding tax on interest
payments on FCCB ` 3,35,70,044/-
2.2 Aggrieved by the order of the assessment
amount
claimed as deduction pertaining to raising of Foreign Currency
Convertible Bonds (FCCB) as revenue expenditure were not
allowable and required to be capitalized because ... FCCB was
raised with the purpose of being required for working capital
whereas the same was used in a manner contrary to permitted
issue of foreign exchange fluctuations on Foreign Currency
Convertible Bonds (FCCB). The assessee has issued 200 FCCBs at a face value ... which is based on an yield of 7.5% compounded semi-annually. The FCCB holders
had the option, at any point of time on or after
Foreign Currency Convertible
5
M/s Spice Jet Ltd.
Bonds (FCCB). The Assessing Officer noticed that these have been
treated as long term foreign currency ... again asked to explain the nature of expenditure made under
ECB and FCCB and why they should be allowed as an expenditure on
Revenue account
respect of External
Commercial Borrowings (ECB) and Foreign Currency
Convertible Bonds (FCCB). The Assessing Officer noticed that
these have been treated as long term foreign ... again asked to explain the
nature of expenditure made under ECB and FCCB and why
they should be allowed as an expenditure on Revenue account
Ghcl Limited, Ahmedabad vs The Dy.Cit., Circle-4,, Ahmedabad on 5 March, 2021
IN
Aban Offshore Limited, Chennai vs Dcit, Chennai on 19 June, 2017
आयकर अपील य अ
crores
through foreign currency convertible bonds (i.e. FCCB) for the
expansion of existing business. It was submitted that
borrowed funds were for the purpose
this, the Assessing Officer called upon the assessee to
explain why the FCCB issue expenses should not be allowed on
pro-rata basis over ... after taking note of the fact that the
expenses on issue of FCCB bonds were allowed
