9911796707
TMI Blog2022 (9) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... The grounds of appeal raised by the assessee read as under :- "General Grounds 1. That on the facts and circumstances of the case and in law, the order of assessment framed by the Assistant Commissioner of Income Tax, International Tax, Gurgaon (hereinafter referred to as "Ld. AO") pursuant to the directions passed by the Hon'ble Dispute Resolution Panel (hereinafter referred to as "Hon'ble DRP") under Section 144C(5) of the Act, is a vitiated order having been passed in violation of principles of natural justice and is otherwise arbitrary and is thus bad in law and void-ab-initio. 2. That the Hon'ble DRP directions are bad in law to the extent the same are prejudicial to the Appellant. 3. Ground on applicability 0/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible debentures ('NCDs') of Indian companies (namely Zuari Cement Limited and Heidelberg Cement India Limited) from which interest income of Rs.47,69,72,539 accrued to the assessee during the subject year. The same was offered to tax by the assessee @ 5% in accordance with section 194LD r.w.s. 115A(1)(a)(iiab) of the Income Tax Act, 1961 ('the Act'). The Assessing Officer(AO) took a view that Section 194LD is applicable only in case of interest' from rupee denominated bonds ('RDBs') of Indian company or a Government security whereas the assessee has earned interest from NCD and therefore, a concessional rate of 5% as mentioned in section 194LD was not available thereon. 4. Before the ld. DRP, assessee placed rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e'. [Para 3] The Kerala High Court in CIT v. Cochin Refineries Ltd. [1983] 142 ITR 441/ [1982] 11 Taxman 135 held that in the absence of any definition of 'debenture' in the Act, reliance could be placed upon the definition given in section 2(12) and also the common parlance in which this term is understood. [Para 4] Thus, it would be appropriate to rely upon the definition of 'debenture' as contained in section 2(12) and, therefore, it could not be held that the assessee contravened the provisions of section I3(I)(d). [Para 5] However, the revenue submitted that for the limited purpose, i.e., in the context of section 11 (5) the meaning to be assigned to the expression 'debenture' has to be restricted, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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