Assessee-company, during year, had issued secured unrated fully transferable unlisted 9,500 debentures of face value of Rs. 10 lakhs each aggregating to Rs. 950 crores at a discount of Rs. 3,62,421 per debenture aggregating to total discount of Rs. 350 crores, i.e., at net issue price of Rs. 6,31,579 per debenture, aggregating to Rs. 600 crores for a tenure of three years at a coupon rate of 2 per cent per annum to India Bulls Housing Finance.\u00a0 These debentures were issued on 17-12-2015 and redeemed from open market from 30-3-2015 at a price of Rs. 704.50 crores\u00a0 Thus, as a consequence of redemption of debentures, appellant incurred expenditure on redemption of debentures of Rs. 104.50 crores (Rs. 704.50 crores-Rs. 600 crores). Tribunal held that\u00a0 borrowing had been made through debentures and utilized for purpose of business which had been established through documentary evidence in shape of agreements and correspondences for which, no contrary evidence had been placed on record-Whether claim of deduction of loss incurred on redemption of debentures could not be denied to assessee-company. (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
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