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TMI Blog2005 (1) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee in view of the prescription of the third proviso to section 48 of the Income-tax Act, 1961 (hereinafter called 'the Act'). 3. Third proviso to section 48 of the Income-tax Act, 1961 was inserted by the Finance Act, 1997 w.e.f. 1-4-1998. It reads as under : "Provided also that nothing contained in the second proviso shall apply to the long-term capital gain arising from the transfer of long-term capital asset being bond or debenture other than capital indexed bonds issued by the government," 4. Miss. Seema Bafna, learned Counsel for the assessee vehemently argued that the word "debenture" as used in the proviso is not referable to the Fully Convertible Debentures (hereinafter referred to as "FCD"). According to the learned Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent view in respect of FCD. Law is clear on the point. As such, it should be construed as per the literal interpretation theory. 6. Etymologically, the word "debenture" is derived from the latin "debere", which means to owe. In the Black's Law Dictionary (Special Deluxe Fifty Edition), the word "debenture" is defined as under : "A promissory note or bond backed by the general credit of a corporation and usually not secured by a mortgage or lien on any specific property. Certificate issued by customs to an importer for the deduction or refund of duties on merchandise imported and then exported by such importer. Convertible debenture. Debenture which may be charged or converted into some other security (e.g. stock) usually at the optio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning of the word "debenture" as used in the third proviso to section 48 of the Act. Interpretation postulates the search for the true meaning of the word used in the statute. If the language of the statute is plain obvious meaning is to be applied Rules of interpretation are applied only to resolve the ambiguities. The object and purpose of interpretation is to ascertain the means legis i.e., the intention of the law, as evinced in the statute. The key of the opening of the every law is the reason and spirit of law. To be literal in meaning is to see the body and miss the soul. The judicial key to interpretation is composite perception of the "deha" (body) and the "dehi" (soul) of the provision. 8. We have considered the text and contest o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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