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2019 (11) TMI 1738 - AT - Income TaxIncome accrued in India - Nature of gain - gains arising to the Assessee on the transfer of Compulsorily Convertible Debentures (‘CCDs’) - capital gain or interest income - dispute in the present case arises only because it has been held that the transaction between the petitioner and the Vatika is a sham transaction and. is essentially a transaction of loan to Vatika which has been camouflaged as an investment in shares and CCDs of the JV Company - HELD THAT:- As decided by HC [2014 (8) TMI 9 - DELHI HIGH COURT] in terms of the policy of the Government, the petitioner could invest in a project of the requisite size/ nature and an investment into CCDs would be reckoned as equity. The policy with regard to external commercial borrowings had. other conditions and it. is apparent that the petitioner found, the investment in CCDs as the most appropriate route for making its investment in real estate, in accordance with the policy of the Government of India. In these circumstances, it ought not to be readily inferred, that the entire structure of the transaction was designed solely for the purposes of a avoiding tax - Decided against revenue.
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