2016 (9) TMI 1187

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....ocate With Mrs Mauna M bhatt, Advocate for the Opponent JUDGMENT ( Per : Honourable Mr. Justice KS Jhaveri ) 1. This Tax Appeal under Section 260A of the Income-tax Act, 1961 is filed against the order dated 24.03.2006 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'B' (Special Bench) in ITA No.831/Ahd/1998 raising the following substantial question of law: "Whether....

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.... by the assessee for issuing these debentures. It was set off against the share premium in the books of accounts but was claimed in the computation of income as a deduction. The Assessing Officer disallowed the claim of the assessee vide order dated 25.03.1997. 3. Against the said order, the assessee filed appeal before the CIT(A), which came to be partly allowed, vide order dated 23.02.1998. B....

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.... into equity shares, for which the assessee has incurred expenses. According to the assessee, the expenses incurred were in respect of issuance of convertible debentures. The facts indicate that a portion of the convertible debentures was converted into equity shares and thereby, the assessee company got enduring benefits. Since capital can be raised by converting debentures into equity shares, we....