Facts: The assessee issued FCCBs for raising business funds and claimed deduction of the premium payable on redemption as revenue expenditure. It is further observed, in assessment years 2006-07, the Assessing Officer himself has allowed the premium payable on redemption of FCCBs as revenue expenditure. The above expenditure was claimed as revenue expenditure in the return of income. He accordingly directed the Assessing Officer to allow the expenditure as revenue expenditure. Consequently, in the circumstances of the case, the expenditure was revenue expenditure within Section 10(2)(xv).”