Expenditure on issue of FCCB/ Debentures is a revenue expenditure

The debentures whether convertible or non convertible are in the nature of loan at the time of their issuance and any expenditure incurred on issue of such debentures or bonds had to be regarded as part of the borrowing cost and have to be allowed as a deduction and as a revenue expenditure. This expenditure cannot be regarded as capital. 1. During the year under consideration, the company issued unsecured Foreign Currency Convertible Bonds(FCCB) amounting to Rs. 30 crores. At the time of issuance of FCCB, the Assessee had incurred an expenditure of Rs. 1,34,11,254/- in relation to above issu...