30 January 2013
XYZ company has purchased bonds 9.25% bonds costing Rs. 5000000 at Rs. 6000000 at premium in FY 2010-11, and claimed the amortised bond premium over 5 years Rs 200000 p.a. under allowable exp. Now IT department wants to disallow the amortisation of bond premium.
CAn someone give me a case law supporting allowability of the premium claim or it is to be disallowed?
CAclubindia
