Expenses in connection with issue of FCCB allowable

Mahindra & Mahindra Ltd. Vs Addl. CIT (ITAT Mumbai) The assessing officer disallowed the premium paid on FCCB holding that being capital and contingent. The learned CIT(A) allow relief to the assessee by following the decision of tribunal in earlier years. We have seen that the coordinate bench of Tribunal in assessee’s own case for AY 2006-07 in ITA No. 8597/Mum/2010, on similar set of facts passed the following order; “5. Next ground of appeal is about disallowance of pro rata premium of Rs.5.39 crores payable on redemption of ‘Foreign Currency Convertible Bonds'(FCCB). As per ...