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| The Tax Publishers2020 TaxPub(DT) 5141 (Del-Trib) INCOME TAX ACT, 1961
Section 4
Where FCCB amount had been utilized towards capital expenditure, discount on FCCB was in the nature of capital receipt not exigible to tax.
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Income - Capital or revenue receipt - Discount of buy-back of FCCBs - Proceeds of FCCBs stood utilized for setting up of new project
Assessee-company issued Foreign Currency Convertible Bonds (FCCBs) for setting up of new project. During the year under consideration assessee bought back FCCBs at discount. AO taxed such discount as revenue receipt. Held: Once it was undisputed that FCCB amount had been utilized toward capital expenditure, i.e., setting up of new project, discount on FCCB was in the nature of capital receipt not exigible to tax.
Relied:Logitronics (P) Ltd. v. CIT (2011) 333 ITR 386 (Del) : 2011 TaxPub(DT) 932 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-2010 to 2012-2013
INCOME TAX ACT, 1961
Section 32 Section 43A
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