COMMISSIONER OF INCOME TAX AND THE DEPUTY COMMISSIONER OF INCOME TAX (ASST.) SPECIAL RANGE-5 Vs. ITC HOTELS LTD.

JUDGEMENT

(1.) THE Revenue has come up in this appeal under Section 260A of the Income Tax Act 1961, challenging the legality and correctness of the order passed by the Income Tax Appellate Tribunal, Bangalore, in ITA No. 53/Bang/1997 dated 19. 11.2003.

(2.) THE appeal was admitted on the following substantial questions of law: 1) Whether Tribunal was correct in holding that expenses incurred by the assessee for issue of convertible debentures relating to part -B of the debenture as adverted to in the course of its order that as debentures get converted into shares after 18 months only the same should foe treated as a revenue expense and not as a capital expense during the current assessment year.

(3.) WE have heard the learned Counsel for the revenue and the learned Senior counsel, Sri. Rupesh Jain, for the respondent assessee.