[2022] 141 taxmann.com 242 (Hyderabad – Trib.)

– NBFC converted Debt into Pref. Sh. under CDR and increased authorised Cap

– AO treated ROC exp. as Capital Exp. As the exp is related to the capital increase

– only the existing debts were restructured where CCPS were issued

– ITAT allowed on the grounds that such an increase was necessitated due to CDR as a statutory requirement

– Also there was no change in the capital employed as against the case of Brooke Bond India Ltd. (supra)