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2008 (4) TMI 449 - HC - Income TaxCapital gains - “Whether capital value of such deemed interest to the extent it has been charged lesser than the market rate can be considered as consideration for grant of lease in respect of which the capital gains has to be computed?” - Commissioner (Appeals) has allowed the appeal of the assessee and set aside the order of the learned Assessing Officer, assessing capital gain at an amount of Rs. 51,39,366, on the ground of treating it to be the income derived by the assessee by way of capital gain, as the difference in the rate of interest on the security amount deposited with the assessee, which interest was stipulated to at the rate of 9 per cent. while, according to the assessing authority, interest rate was 18 per cent., therefore, this difference between 9 and 18 per cent. has been taken to be capital gain. – There is no evidence to show that market rate of interest more than 9 percent – Differential interest cannot be considered as capital gains -
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