DCIT (CC)-8(3), MUMBAI vs. 63 MOONS TECHNOLOGIES LTD Q, MUMBAI

ITA 3175/MUM/2024Status: DisposedITAT Mumbai11 December 2024AY 2008-09Bench: SHRI SAKTIJIT DEY, HON'BLE (Vice President), SHRI AMARJIT SINGH, HON'BLE (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) was justified in allowing the appeal. The issue of ZCCB expenses being capital in nature and not debited to P&L was decided in favour of the assessee by the CIT(A), and the Tribunal found no reason to interfere.

What were the facts?

The assessee claimed a deduction for proportionate premium on Zero Coupon Convertible Bonds (ZCCB), which was debited to the share premium account. The Assessing Officer disallowed this claim, stating it was not debited to the profit and loss account and was capital in nature. The CIT(A) allowed the assessee's appeal.

What were the issues?

Whether the expenses incurred for issuing ZCCBs are revenue or capital in nature, and whether they are allowable as deductions. Also, whether the AO properly recorded satisfaction for disallowance under Section 14A.

Which sections of the Income-tax Act were involved?

Section 14A

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Income Tax Appellate Tribunal, MUMBAI BENCH ‘D’, MUMBAI

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI AMARJIT SINGH, HON’BLE

For Appellant: Shri Sukhsagar Syal
For Respondent: Smt. Sanyogita Nagpal, CIT/DR
Hearing: 21.11.2024Pronounced: 11.12.2024

PER AMARJIT SINGH, AM:

Both these appeals filed by the Revenue pertaining to A.Y. 2007-08 and 2008-09 are directed against the different order of ld. CIT(A)-50, Mumbai. Both these appeals filed by the Revenue are based on identical issue and similar facts, therefore, for the sake of convenience these appeals are adjudicated together by taking ITA No. 3178/M/2024 as lead case and its finding will be applied mutatis mutandis to the other appeals whereunder it is applicable.

(ITA No. 3178/M/2024 (A.Y. 2007-08)

1.

Whether on the facts and under the circumstances of the case and in law, the Hon'ble ITAT was Justified in deleting the disallowance made by

The order continues below.

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