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2016 (11) TMI 447 - ITAT MUMBAINature of receipt of Penal interest - additional consideration for the delay in the open offer as per the SEBI Regulations - whether had to be taxed as interest income or capital gain - Held that:- In the case in hand the interest is received in pursuance to the directions of the SEBI and due to delay in completion of the process of buy back of shares as prescribed under the SEBI regulations. The real acquisition of shares took place only in the month of November 2001 and prior to the said date it cannot be said that the interest was paid due to delay in the payment of consideration. Therefore, we held that the additional amount received by the assessee being 15% interest from 8.8.2000 to 22.11.2001 is part of sale consideration and accordingly will be treated as part of capital gain and not the income from interest.
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