appellant company had raised money from
investors through FCCB (Foreign Currency Convertible Bond) for company's
business.
(iii) This FCCB instrument had provided ... option to the investors to convert the amount
covered by FCCB into equity shares of the company at a fixed price or alternately retain
FCCB
assessee had borrowed funds by issuing Foreign Currency Convertible
Bonds (FCCB) during the financial year 2012-13. The same was issued at a
premium ... Assessing Officer noticed that, as per the agreement entered for
receiving FCCB, the assessee would be liable to bear withholding tax only in
excess
deleting the addition of Rs.3,30,36,346/- being expenses
of FCCB held s capital expenditure by the AO, by merely relying ... case
there were various terms offered for raising the funds through FCCB
convertible into ordinary equity shares therefore the ratio of M/s. Secure
Meters
account of disallowance of interest on
Foreign Currency Convertible Bonds ("FCCB").
24. While framing assessment proceedings, the ld.AO noticed from the
Statement ... Income that the assessee has bought back Foreign Currency
Convertible Bonds (FCCB) amounting to USD 3500000 and paid financial
charges/premium amounting
last day of the year on
the outstanding foreign currency loan (FCCB) which was utilized for investment in
subsidiary. The assessee had outstanding FCCB loan ... para 8.1 of the order is as
under:
8.1 The appellant obtained FCCB loan and invested the same in the shares of its
subsidiary namely
assessee's plea
that the same should be bench-marked at FCCB rates could not be
-7-
accepted. The effective rate charged ... such a transaction, could be
compared with Foreign Currency Convertible Bonds (FCCB) which
provide similar right of conversion to the investors. The assessee
assessee‟s own
case, allowed the expenditure incurred with regard to FCCB as Revenue in
nature.
Page | 12
`Mahindra & Mahindra Ltd.
ITA No.7287
case for A.Y. 2010-11 forex gain on restatement of
FCCB is held to be operating in nature. It is submitted that, also ... assessee did
not claim foreign exchange gain of FCCB for acquisition of capital
asset in the computation of income and the same was treated
Ambuja Cements Ltd, Mumbai vs Addl Cit Ltu, Mumbai on 7 November, 2022
ITA Nos
Ambuja Cements Ltd ( Formelry Known As ... vs Addl Cit Rg 3(1), Mumbai on 31
