Dy. CIT v. Kanoria Chemicals & Industries Ltd. (2022) 215 TTJ 1003 (Kol)(Trib)

S. 36(1)(iii) : Interest on borrowed capital-Premium paid maturity of foreign currency convertible bonds-Not debited to profit and loss account-Disallowance is not valid. [S. 145, Companies Act, 1956]

Held that the  premium paid on maturity of foreign currency convertible bond  allowable as  deduction,  same could not be disallowed on the ground that the   expenditure was not routed through the P&L account. (AY. 2012-13)