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2019 (5) TMI 1007 - HC - Income TaxCharacterization of income - compensation received by the appellant from Oracle Global (Mauritius) Ltd. for delay in payment of proceeds of shares tendered under the open offer - Capital Gains or Interest Income - HELD THAT:- Undisputed facts are that the sum of ₹ 16/per share which resulted into additional receipt of ₹ 2.20 Crores to the Assessee, was part of the offer for sale of shares made by the Assessee. The reason for increasing the offer by the said sum of ₹ 16 per share may be on account of delay in issuance of the shares, nevertheless, the same was nothing but part of the sale price of the share. The revised offer which the company announced for issuance of the shares quoted the price of the share at ₹ 2,100/. This included the additional component of ₹ 16/per share. Looked from any angle thus, the shares were sold @ ₹ 2,100/per share. The component of ₹ 16/per share was embedded in the share price. This component cannot be seen as an interest on delayed payment on price of the share. This amount of ₹ 16/, thus, was part of the sale price of the share and would retain the same character as the original price of the share. The receipt of ₹ 2.20 Crores relatable to this component of ₹ 16/per share was thus clearly a capital receipt. In case of Genesis Indian Investment Company Ltd. [2013 (8) TMI 838 - ITAT MUMBAI] were somewhat different. Under the circumstances, we have proceeded to dispose of this Appeal, despite the fact that this Court has admitted the Revenue's Appeal in case of Genesis Indian Investment Company Ltd. (supra). - Decided against revenue.
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