that the
assessee company has reduced Rs.225.00 crores relating to Debenture
Redemption Reserve (DRR) from the Net Profit, while computing Book profit ... assessee company did so treating the amount
appropriated to Debenture Redemption Reserve as an "ascertained liability".
The Ld Pr. CIT took the view
issue
involved is one and common as to whether the Compulsorily Convertible
Debentures (CCDs) are debt or equity and whether interest on CCDs ... erred in not appreciating the fact that
Compulsory Convertible Debenture (CCD) are in the nature of equity
and not debt
term
capital loss of Rs.155,75,00.000 arising on sale of
debentures of M/s. Arch Propbuild Pvt. Ltd.,, on
mere surmises and conjectures ... onus of establishing the genuineness of
transaction of purchase and sale of debentures,
resulting in short-term capital loss.
4
ITA.No.2691/Del./2018
aggregating
and non- mortgage to Rs. 5600
convertible created vide crores) and
debentures for deed dated 15 redeemable
maximum of Rs. September non-
3600 Crore ... convertible
sanctioned by a Simultaneousl debentures
consortium of the y, a Mortgage of Rs.
lenders of JAL Deed dated 2409.25
("Original December 29, crores
computation LTCG
arising from transfer of LTC assets being bond or debenture other than capital indexed
bond issued by the Govt. Hence, as per above ... proviso to section 48 of the Act as these were
bonds and debentures. Third proviso to section 48 read as under:
"Provided also that
reduce the amount of Rs.30 Cr., being
provision for Debenture Redemption Reserve (DRR), while calculating
income u/s. 115 JB.?."
b)"Whether
interest
payment on Fully and Compulsory Convertible Debentures („FCCDs‟) by
Appellant to its Associated Enterprise („AE‟) without reference to actual
terms of comparable security issuance ... assessee has issued fully and compulsorily
Page | 2
convertible debentures to associated enterprises. In the transfer pricing
study documents assessee reported the payment of interest
company had
raised deposits from retail investors, by instruments
purporting to be debentures. The debentures were issued
to more than 3000 investors.
In accordance with ... provisions of sec. 67 of the
Companies Act, 1956, these debentures were deemed to
have been issued to public. - - - -
The debentures were issued in breach
Limited (earlier IL&FS Trust Company Limited) (Vistra - in short) is
debenture trustee in respect of non-convertible debenture holder in
Respondent ... Crores. The Appellant had agreed to subscribe to 906599
compulsory convertible debentures (CCD) and had also taken one equity
share for aggregate consideration
derived on receipt of management
services.
2. Re-characterization of Compulsory Convertible Debentures &
interest thereon:
2.1. On facts and in the circumstances ... erred in going beyond
the scope to re-characterize the Compulsory Convertible
Debentures ('CCD') as loan for benchmarking the international
transaction of interest
