Interest on Compulsory Convertible Debentures deductible u/s 36(1)(iii)

Religare Finvest Ltd. Vs DCIT (ITAT Delhi) ITAT Delhi held that Compulsory Convertible Debentures are in the nature of borrowed fund and continued to be debt till conversion thereof into shares and consequently interest on Compulsory Convertible Debentures is allowable as revenue deduction u/s 36(1)(iii) of the Income Tax Act. Facts- The case of the assessee was selected for scrutiny. Order u/s 143(3) of the Act was passed assessing the income at Rs. 307,17,44,697/- after disallowance of Rs.16,72,58,935/- u/s 14A read with Rule 8D of the Income Tax Rules, 1962, Rs. 9,65,00,120/- on account of ...