Premium on Redemption of FCCB is Revenue expense

Strides Shasun Limited Vs ACIT (ITAT Mumbai) The learned Counsel for the assessee explained the facts that the assessee company has issued Foreign Currency Convertible Bond i.e. FCCB (listed in Singapore Stock Exchange) to the extent of US $ 40 million. These bonds carry an interest rate of 0.5% p.a. and are redeemable on April 19, 2010 at 136.78 percent of the Principal amount. Further, these bonds are convertible into shares by Bond holders on or after May 18, 2005. The total issue expenses relating to the issue of FCCB is USD $ 10,77,926 claimed in equal installments over a period of 5 year...