{"id":854,"date":"2009-08-13T08:56:33","date_gmt":"2009-08-13T08:56:33","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=854"},"modified":"2009-08-13T08:56:33","modified_gmt":"2009-08-13T08:56:33","slug":"cit-vs-secure-meters-rajashthan-high-court","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-secure-meters-rajashthan-high-court\/","title":{"rendered":"CIT vs. Secure Meters (Rajashthan High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=65\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=65&varname2=secure_meter_convertible_debenture_expenditure.pdf'; }, 100)\" ><strong>Click here to download the judgement (secure_meter_convertible_debenture_expenditure.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong> Expenditure on convertible debentures is deductible <\/strong><\/p>\n<p>The assessee incurred expenditure on issue of <strong>convertible debentures<\/strong>. The department claimed that convertible debentures were akin to shares and that in line with the judgement of the Supreme Court in <strong>Brooke Bond<\/strong> 225 ITR 798 the expenditure was capital in nature. HELD rejecting the claim that: <\/p>\n<p><strong>A debenture, when issued, is a loan. The fact that it is convertible does not militate against it being a loan<\/strong>. In accordance with India Cement 60 ITR 52 (SC), expenditure on a loan is always revenue in nature even if the loan is taken for capital purposes. Consequently, <strong>the expenditure on convertible debentures is admissible as revenue expenditure<\/strong>.<\/p>\n<div class=\"journal\">\nNote: The Department\u2019s SLP against this judgement has been dismissed (included in the above file).  <\/div>\n<div class=\"journal\">\nSee Also: <strong>Ashima Syntex<\/strong> 100 ITD 247 (Ahd) (SB) where a contrary view was taken and <strong>Ganesh Benzoplast<\/strong> 111 TTJ (Mum) 385 where a favourable view was taken.\n <\/div>\n<p><!--\n\n\n\n\n\n\/\/--><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>A debenture, when issued, is a loan. The fact that it is convertible does not militate against it being a loan<\/strong>. In accordance with India Cement 60 ITR 52 (SC), expenditure on a loan is always revenue in nature even if the loan is taken for capital purposes. Consequently, <strong>the expenditure on convertible debentures is admissible as revenue expenditure<\/strong>.<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-secure-meters-rajashthan-high-court\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-854","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=854"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/854\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}