Additional amount paid on FCCB is revenue expenditure

ACIT Vs Hikal Ltd (ITAT Mumbai) ITAT Mumbai held that when company issues Foreign Currency Convertible Bonds (FCCB) they incurs a liability to pay a larger amount than what is borrowed and such liability to pay the additional amount is revenue expenditure. Facts- The assessee company had issued Foreign Currency Convertible Bonds in F.Y. 2005-06. These bonds were convertible at the option of the bondholder on or after 01.11.2005 but prior to close of business on 10.10.2010 at a fixed exchange rate. As the bond holders had not converted any bonds till 31.03.2010 and the possibility of their exer...