Nature of Gains on sales of equity shares & compulsorily convertible debentures?

In the case of Zaheer Mauritius v. Director of Income-tax (International Taxation) -II, [2014] 47 com 247 (Delhi)) it was held that  gains arising to a non-resident investor from sale of compulsorily convertible debentures (‘CCDs’) in an Indian company do not assume the character of interest and should be treated as capital gains. Full text of the Judgment is as follows :- HIGH COURT OF DELHI AT NEW DELHI  W.P.(C) 1648/2013 & CM NO.3105/2013 ZAHEER MAURITIUS Versus DIRECTOR OF INCOME TAX  (INTERNATIONAL TAXATION)-II Advocates who appeared in this case: For the Pet...