with law. The above
directions are without prejudice to the rights of FCCB
holders to enforce their rights of redemption against ZIL
before competent authority ... FCCBs would be converted into shares of the issuing Company by the FCCB
holders. But, due to the global economic crash in the year
proceeds of the said FCCB funds, an amount of
Rs.5142 crore was given to M/s. Reliance Info Investments
Ltd., (RIIL), which was invested ... FCCBs during the previous year
relevant to the assessment year under consideration. FCCB means a
bond expressed in foreign currency, the principal and interest
section 35D on issue of
Foreign Currency Convertible Bonds (in short "FCCB"). The
said sum was disallowed ... reason that FCCB
are not on account of any public issue and only qualified
institutional investors are offered the bonds. The A.O./DRP
have
follows:
"1. The Company has defaulted on its US$ 33 Million FCCB
which was due on 21st September, 2011 and is in negotiation
with ... Company made a
settlement proposal over a 3 year period to the FCCB bondholders before the
SAT. On 4th July, 2013, the above Company Petition
amount of
Rs.43,63,01,149/- from the amounts received from FCCB till the next date of
hearing. By an order dated ... respondents not to disburse amount of Rs.43,63,01,149/- from FCCB. The said
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incurred
by the assessee towards the issue of Foreign Currency Convertible Bonds
(FCCB). The assessee had issued FCCB of USD 100 million on 28.4.2004 with ... incurred expenditure of Rs.11,85,26,700/- for
the issue of FCCB. The AO asked the assessee to explain as to why these
expenses
expenses u/s.35D in relation to
expenditure incurred on issue of FCCB bonds. The assessee
had claimed Rs.63,32,210/- under Section ... amortization
of expenditure on issue of FCCB Bonds. The assessing officer
disallowed on the following grounds:-
a) FCCB is not an issue for public subscription
follows:
"1. The Company has defaulted on its US$ 33 mn FCCB which
was due on September 21, 2011 and the Company ... sale of the division would be utilized for partial
payment of the FCCB Bonds. No disclosure was made of any part of the
consideration realised
follows:
"1. The Company has defaulted on its US$ 33 Million FCCB
which was due on 21st September, 2011 and is in negotiation
with ... Company made a
settlement proposal over a 3 year period to the FCCB bondholders before the
SAT. On 4th July, 2013, the above Company Petition
reference for the
purpose of issuing Foreign Currency Convertible Bond ("FCCB") at a
higher price than what was the correct price. SEBI initiated ... attempt to manipulate the share prices of the company before the FCCB
issue of "MIL". It appeared to SEBI that a group
