Karnataka High Court treats discount on issue of debentures as a deductible expenditure to be proportionately claimed over the period of redemption.
The Hon’ble Karnataka High Court in its recent ruling1
has held that discount given at the time of
issuance of debentures which are to be redeemed in stages over a period of five years shall be
allowed as a deduction on a proportionate basis which is to be spread across the period of
redemption of such debentures.