...redemption reserve has gone up to Rs 1,12,00,000. A perusal of the balance sheet further shows that the assessee-Company had floated and actually issued 6 1/2 per cent secured redeemable mortgage debentures...by the assessee-Company to enable it to redeem the said debentures when they became due for redemption. Since the aggregate amount of such debentures is much larger than the amount of the debenture....5. The finding of fact in this case is that the amount set apart for redemption of debentures is less than the Company's liability on this account. Therefore, the answer to the...

...circumstances of the case and in law, the learned CIT(A) has erred in confirming that the premium on redemption of debentures amounting to Rs. 6,44,42,000/- is revenue receipt and taxable under the head “Income...from other sources”. The assessee submits that the premium on redemption of debentures is liable for tax under ‘capital gains’.3. Without prejudice to the above the assessee submits that...the premium of Rs. 6,44,42,000/- on redemption of debentures is taxable under the head ‘capital gain’ and not under the head ‘Income from other sources’”.2. At the time of hearing...

...Mills Ltd., in the proceedings for the assessment year 1969-70 for assessment of surtax, the Income-tax Officer took into consideration reserve for redemption of debentures and for meeting bad and...and held that the amounts kept apart by the company as reserves for redemption of debentures and for meeting bad and doubtful debts could not be treated as reserves, as these were provisions made by...was any mistake apparent on the record was one of fact. 4. The Income-tax Officer in the first instance had accepted that the company had made reserves for redemption of debentures and...

...redemption of debentures in future years. The Assessing Officer disallowed the same and also disallowed the amount claimed on the debenture issue expenses. Aggrieved by the order of the Assessing Officer, the...that the premium payable on actual redemption of debentures in future years is to be spread over and part of it is allowable as a deduction in this assessment year ?”T.C (A) No. 209/06...:“2. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the expenditure incurred for issue of debentures in earlier years is to be spread over and allowed as a deducti...

...revenue in nature?(iii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the premium on redemption of debentures should be...appeal in respect of the issue raised herein viz. allowability of premium paid on pre-redemption of debentures as revenue expenditure by following a decision of its Co-ordinate Bench in...allowed in full in the year of redemption?(iv) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the expenditure on acquisition...

...retrospectively?(2) Whether the appellate authorities were correct in holding that a provision for premium on redemption of debentures of Rs. 4,82,143 is an allowable deduction by...K.L Manjunath, J.:— This appeal is by the Revenue challenging the current findings of the Commissioner of Income-tax and the Income-tax Appellate Tribunal, Mumbai, dated April 27, 2004, in...I.T.A No. 6613.MUM/97 raising the following substantial questions of law:“(1) Whether the appellate authorities were correct in holding that donation made by the assessee to hospital...

...addition made on account of treating premium received on redemption of debentures as income from other sources against claim of assessee as capital gain?”12. And the Hon'ble High Court...answered as under:—3. So far as question (ii) is concerned, the respondent-assessee had claimed premium on redemption of debentures as income from capital gains. Whereas the assessing...officer held that the redemption of debentures is revenue receipt assessable to tax under the head income from other sources. The CIT(A) confirmed the order of the assessing officer. The respondent...

...with respect to non-redemption of debentures. Further, the appellant requested to take action under the RTI Act. 5. I have perused the application and the response provided thereto... pertaining to non-redemption of debentures. In this regard, I note that the Hon'ble CIC, in the matter of Mohan Kumar Sharma vs. CPIO, Prime...in this regard. 7. Further, on perusal of the appeal, it appears that the appellant has grievance with respect to non- redemption of debentures. In my opinion, if the appellant has...

...-convertible debentures of face value of Rs.10 lacs each aggregating to Rs.75 1 croresredeemable after five years at a premium ...redemption of debentures may not be disallowed, the assessee submitted that being a corporate assessee, the assessee is required to maintain its accounts on mercantile/accrual basis and accordingly, a sum...of Rs.20,73,77,111/- being the proportionate amount of premium accrued for the year, has been booked under the head 'premium on redemption of debentures under Finance Expenses'. The assessee further...

...record. The issue that arises for consideration is whether the proportionate premium on redemption of debentures is allowable as deduction. There is no quarrel about the proposition...that premium paid on redemption of debentures is revenue expenditure and allowable proportionally during the period of debenture. But the issue requires to be examined with...assessment year under consideration, in terms of which, it cannot be said that there was a definite liability towards premium on redemption of debentures as it is dependent on...

...the Ops jointly and severally to make payment of an amount of Rs.69,713/- payable towards redemption of debentures and premium amount along with interest @ 18% p.a. from the date of payment ...Order Pronounced by Honble Sri.Jabez Samuel, President :- 1. The complaint filed Under Section 12 of C.P. Act 1986 claiming to direct...premium Dated 28.07.2006 to till realization along with a compensation of Rs.50,000/- and also award costs of the petition, in the interest of justice. 2. It is observed that the...

.... Hon'ble Bombay High Court in the case of Bennett Coleman & Co. Ltd., 259 CTR 383 (Bom.) has held that the AO considered the premium received on redemption of debentures to be taxable under.... So far as question (ii) is concerned, the respondent-assessee had claimed premium on redemption of debentures as income from capital gains. Whereas the assessing officer held that the redemption of ...respondent-assessee. On further appeal, the Tribunal held that there is no dispute with regard to the fact that the respondent-assessee had disclosed that the amount received as premium on redemption of debentures in...

.... The Trustees for the public debentures had instituted a Suit bearing No 771 of 2002 in the Bombay High Court claiming the entire redemption amount. The matter is sub-judice. 5...the constraints in early redemption of the debentures, it is submitted that no investor grievances remain pending to be resolved. It is requested to delete 133 cases of Investors Grievances, as..., 2004 and called upon it to resolve these grievances. Out of these 86 complaints, 51 complaints related to non receipt of redemption amount of debentures and 24 complaints related to non receipt ...

...redemption of the debenture, the holders of the debentures were entitled to certain shares. The issue of shares is a future event which may or may not happen. At present, the expenditure incurred was...Assessing Officer was wrong in treating part of the expenditure as capital expenditure on the reasoning that at the time of redemption of debentures, the holders of the debentures would b...on the issue of debentures only and hence the expenses incurred on obtaining a loan is a revenue expenditure. We accordingly uphold the claim of the assessee.The Assessing Officer had...

...law in upholding the disallowance of Rs.28,83,17,552/- being deduction claimed on interest/redemption premium on debentures on the facts and circumstances of the case...tax liability arising between original return and the revised return. Assessee replied stating that the deduction of premium on redemption of debentures to the tune of Assessment Year... 1 Rs.28,82,17,552/- had not been claimed in the original return. The Assessing Officer disallowed the deduction on redemption of debentures....

.../2017 The only issue arises for consideration is disallowance of premium on redemption of debentures. 5. Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that premium...on redemption of debentures has to be allowed as revenue expenditure in view of the judgment of Apex Court in Madras Industrial Investment Corporation v. CIT (1997) (225 ITR...opinion that the premium on redemption of debentures has to be allowed. Therefore, we are unable to uphold the order of the lower authority. Accordingly, orders of both the authorities below are set...

.../2017 The only issue arises for consideration is disallowance of premium on redemption of debentures. 5. Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that premium...on redemption of debentures has to be allowed as revenue expenditure in view of the judgment of Apex Court in Madras Industrial Investment Corporation v. CIT (1997) (225 ITR...opinion that the premium on redemption of debentures has to be allowed. Therefore, we are unable to uphold the order of the lower authority. Accordingly, orders of both the authorities below are set...

.... 5. The next common issue in both these appeals of the Revenue is that Commissioner of Income Tax (Appeals) erred in deleting the disallowance of premium paid on redemption of ...and paid premium of ` 3,95,59,000/- and ITA Nos.2953 & 2954/Mds/2014 `3,18,20,539/- for these assessment years 2010-11 and 2011-12 respectively on such redemption of debentures. The assessee has...redemption of optionally convertible debentures is capital expenditure. On appeal, Commissioner of Income Tax (Appeals) referring to various decisions including the decision of Honble Supreme Court in...

...redemption of debentures as income from capital gains. Whereas the assessing officer held that the redemption of debentures is revenue receipt assessable to tax under the head income from other so...regard to the fact that the respondent-assessee had disclosed that the amount received as premium on redemption of debentures in its computation of income. Further, the Tribunal records that it is not...considered the said premium received on redemption of debentures to be taxable under the head income from other sources while the respondent-assessee considered the same to be taxable under the head capital...

.... 5. The next common issue in both these appeals of the Revenue is that Commissioner of Income Tax (Appeals) erred in deleting the disallowance of premium paid on redemption of ...and paid premium of ` 3,95,59,000/- and ITA Nos.2953 & 2954/Mds/2014 `3,18,20,539/- for these assessment years 2010-11 and 2011-12 respectively on such redemption of debentures. The assessee has...redemption of optionally convertible debentures is capital expenditure. On appeal, Commissioner of Income Tax (Appeals) referring to various decisions including the decision of Honble Supreme Court in...