https://www.taxtmi.com/caselaws?id=768229 ITAT Mumbai held that premium paid on redemption of optionally fully convertible debentures (OFCDs) constitutes revenue expenditure and is deductible. The AO incorrectly disallowed the deduction, misunderstanding that funds raised through OFCDs were used for business purposes including security deposits and land development under a joint development agreement. The tribunal relied on Bombay HC precedent in Raymond Ltd and SC decision in Madras Industrial Investment Corporation, establishing that such premiums qualify as revenue expenditure. The CIT(A)'s deletion of disallowances was upheld, favoring the assessee. en-us Fri, 21 Mar 2025 00:00:00 +0530 Thu, 03 Apr 2025 07:50:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768229 ITAT Mumbai held that premium paid on redemption of optionally fully convertible debentures (OFCDs) constitutes revenue expenditure and is deductible. The AO incorrectly disallowed the deduction, misunderstanding that funds raised through OFCDs were used for business purposes including security deposits and land development under a joint development agreement. The tribunal relied on Bombay HC precedent in Raymond Ltd and SC decision in Madras Industrial Investment Corporation, establishing that such premiums qualify as revenue expenditure. The CIT(A)'s deletion of disallowances was upheld, favoring the assessee. Case-Laws Income Tax Fri, 21 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768229