Expenditure Incurred on Issuance of Debentures is Revenue Expenditure: ITAT Bangalore allows Deduction [Read Order]

In Shanders Properties Pvt. Ltd Vs. ITO, the ITAT Bangalore directed the AO to allow the expenditure incurred in relation to issuance of debentures as it constitute revenue expenditure under the provisions of the Income Tax Act. In the instant case, the Assessing Officer disallowed the assessee’s claim for expenditure towards issuance of debentures for the reason that it is in the nature of capital expenditure. On first appeal, the first appellate authority confirmed the order on the basis of the decisions of the Gujarat High court and Mumbai Tribunal. After considering arguments from both...