https://www.taxtmi.com/caselaws?id=794993 Court-approved capital reduction through direct cancellation of shares is distinct from a buy-back and is not taxable under the buy-back tax regime; treating it as both capital reduction and buy-back would create impermissible double taxation. Interest on borrowings used in commercially expedient capital restructuring was characterised as revenue expenditure deductible for business purposes. Interest on compulsorily convertible debentures remained deductible because the instruments retained their debt character until conversion and the foreign subscription was adequately substantiated. Property management fees and customer advances were supported by contractual and documentary evidence, so the related disallowances lacked an evidentiary basis. en-us Wed, 08 Jul 2026 00:00:00 +0530 Wed, 15 Jul 2026 08:21:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794993 Court-approved capital reduction through direct cancellation of shares is distinct from a buy-back and is not taxable under the buy-back tax regime; treating it as both capital reduction and buy-back would create impermissible double taxation. Interest on borrowings used in commercially expedient capital restructuring was characterised as revenue expenditure deductible for business purposes. Interest on compulsorily convertible debentures remained deductible because the instruments retained their debt character until conversion and the foreign subscription was adequately substantiated. Property management fees and customer advances were supported by contractual and documentary evidence, so the related disallowances lacked an evidentiary basis. Case-Laws Income Tax Wed, 08 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794993