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
Company
issued foreign currency convertible by the Foreign Currency
Convertible Bonds ("FCCB's" for convenience) for USD 33
million ... FCCBs by borrowing money or selling a business / division
since 2006 FCCB's were due for redemption on September
Company
issued foreign currency convertible by the Foreign Currency
Convertible Bonds ("FCCB's" for convenience) for USD 33
million ... FCCBs by borrowing money or selling a business / division
since 2006 FCCB's were due for redemption on September
seventh disputed issue is in regard to
disallowance of depreciation claim on FCCB premium,
where the assessee has debited in the earlier year an
amount ... depreciation. The AO was not satisfied
with the claim as the FCCB premium was capitalized
under the pre-operative expenditure and subsequently
capitalized under
were raised by the assessee
through issue of Foreign Currency Convertible Bonds (FCCB). In other
words, the monies raised by the assessee through issue ... FCCB were
lying in the bank account of State Bank of India in the name of the
assessee at Bahamas. This FCCB funds lying
receipt of external commercial
borrowings (ECB) & foreign currency convertible bonds (FCCB)
Rs.7,64,80,000/-:
25. In this regard, the ld. Counsel submitted ... arose on account of restatement of ECB
and FCCB which had been credited to the profit and loss account. He
submitted that the borrowing
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
External Commercial Borrowings (ECB) & 'Foreign Currency
Convertible Bonds' (FCCB) for which they have received services of various
service providers viz., Merchant Bankers ... their
services in Foreign Currency for raising funds through ECB & FCCB. Since
these service provider were located outside India, as per Rule
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
payment of
service tax. They also stated that Foreign Currency Convertible Bonds
(FCCB) were raised in November 2006 and the payment of service ... year from the
date of raising the Foreign Currency Convertible Bonds (FCCB), they
have requested for waiver of Show Cause Notice under section
