2014
ITANo.1378 & 2288/Del/2017
Assessing Officer on utilization of FCCB proceeds towards
depreciable assets.
4) That on the facts and circumstances ... being the depreciation
allowed by the Assessing Officer on utilization of FCCB
proceeds towards depreciable assets by the CIT(A). The
additional ground relates
also taken up issue of premium paid on redemption of FCCB
/Debentures of Rs.59.01 crores and observed that during the
year, the assessee ... claimed Rs.59.01 crores towards
premium of FCCB/Debentures. Out of this, Rs.33.53 crores
represents premium on debentures, which ought to have
business more efficiently and effectively.
8. Re: Disallowance of Premium paid on FCCB- Rs 5,945,459,801/-
8.1 The Ld. DRP erred both ... disallowing the premium paid on
redemption of Xero Coupon Convertible Bonds ("FCCB") amounting as capital expenditure
without appreciating that treatment given in books
purchase of 51% share
holdings of Zynergy India and towards FCCB in terms of the
preceding clause, totalling to Rs.10 Cores ... towards purchase of shares and 5,43,47,250 towards FCCB)
Kohli Ventures has further agreed subject to clause 29(d) to
invest additional amount
respect of capitalization of
professional fees capitalised of certain expenses FCCB Premium and
FCCB Issue Expenses."
(b) The Applicants submit that during the course ... erred in deleting the addition by way of disallowing FCCB
Premium. "
6. ''On the facts and in the circumstances of the case
account of gain in foreign exchange fluctuation
related to liability towards FCCB, the A.O. treated them as taxable ... towards cost of shares of subsidiary at the time of payment of FCCB. There is no
dispute as far as amount of foreign exchange gain
being payment of premium
on redemption of FCCB and claimed by the appellant is allowable
expenses subject to disallowance ... whereas FCCB issue
proceeds were utilized towards funding of capital expenditure and related
issue expenses and it was also observed that no such provision
External Commercial Borrowings' (ECB) & 'Foreign Currency
Convertible Bonds' (FCCB) for which they have received services of various
service provider viz. Merchant ... their
services in Foreign Currency for raising funds through ECB & FCCB. Since
these service provider were located outside India, as per Rule
submitted that foreign exhange
loss on zero coupon FCCB Rs. 195.07 crore, and on HSBC loan 51.81
crores are of both capital and revenue purposes ... capital purpose
loss on FCCB loan is 164.96 crores loan is 49.04 crores and on HSBC
loan is 49.04 Crores. 21.5. From the balance sheet
convening of a meeting
of shareholders, secured creditors, unsecured creditors and FCCB holders for
approval of the scheme of compromise and arrangement.
8 JSPL
