9911796707
TMI Blog2019 (11) TMI 1738X X X X Extracts X X X X X X X X Extracts X X X X ..... fer of compulsorily Convertible Debentures(CCDs) to M/s Vatika Ltd. is in the nature of capital gain and not in the nature of interest income as held by the Assessing Officer on the basis of Advance Ruling dated 21.03.2012 in AAR No. 1048 of 2011 pronounced by the Hon'ble Authority for Advance Ruling. (ii) Whether on the facts and in the circumstances of the case and in law, the CIT(A) has erred in holding that the gains arising to the assessee on the transfer of Compulsorily Convertible Debentures(CCDs) to M/s Vatika Ltd. is in the nature of capital gain and shall not be taxable in India under Article 11 of the Double Taxation Avoidance Agreement between India and Mauritius. (iii) Whether on the facts and in the circumstances of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed a writ petition against aforesaid Ruling of the AAR on 07.03.2013. The Hon'ble Delhi High Court vide order dated 30.07.2014 adjudicated thereupon. The order is reported in 47 taxmann.com 247 (Del). Among other things, the Hon'ble High Court held at paras 15 and 31 as follows:- "15. Under normal circumstances, it is undeniable that gains arising from transfer of a debenture, which is a capital asset in the hands of the transferor, in favour of a third party, would be capital gains and not interest. In other words, if a debenture (which is a capital, asset) is transferred, by a. holder to a. third party, the gains that arise i.e. difference between the costs of purchase, and the sale consideration would be capital gains in the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed by Judgment of Hon'ble Delhi High Court in the case of same assessee vide Order Dated 30.07.2014. 5. Considering the above facts and in the light of findings of the Ld. CIT(A), we are of the view that the issue is covered in favour of assessee by Judgment of Hon'ble Delhi High Court Order Dated 30.07.2014, which fact is also confirmed in Ground No.3 of the Departmental Appeal (supra). Respectfully following the Judgment of Hon'ble Delhi High Court Dated 30.07.2014, we dismiss the appeal of Department as no infirmity have been pointed-out in the Order of the Ld. CIT(A) by following the Judgment of Hon'ble Delhi High Court in the case of same assessee. 6. In the result, appeal of Revenue dismissed. Order pronounced in the open Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
