Borrowings for Capital Reduction – Interest Deductible; Buyback Tax Inapplicable Pre-01.06.2016

N V Projects Private Limited Vs DCIT (ITAT Mumbai) Interest on Borrowings for Capital Reduction Allowed -Buyback Tax u/s 115QA Inapplicable to Pre-01.06.2016: ITAT Mumbai Assessee, engaged in operation & maintenance of an IT Park, had pursuant to approval of the Bombay High Court reduced its capital by cancelling 1,65,433 redeemable optionally convertible preference shares of Rs. 100 each, returning capital of Rs. 67 crore to preference shareholders at Rs. 4,050 per share. For this purpose, Assessee borrowed funds & incurred interest of Rs. 11.56 crore which was claimed as deduction u/...