Expense on conversion of debenture bond into equity share not allllowable

Sacmi Engineering India P. Ltd. Vs DCIT (ITAT Ahmedabad) main issue for our consideration is that whether the expenditure on conversion of debenture bond into equity share capital is revenue or capital expenditure. The claim of the assessee is that since capital base has been increased due to conversion of debenture for meeting working capital of the assessee-company, the expenditure for such conversion ought to be allowed as revenue expenditure. As observed by the ld.CIT(A), facts of the case of the assessee clearly indicate that portion of convertible debenture was converted into equity shar...