Profit on transfer of Indira Vikas Patras before maturity is capital gain and tax is chargeable

RELEVANT PARAGRAPH 12. After hearing both the sides at length we hold that the following facts are not in dispute:- The assessee purchased the Indira Vikas Patra during the financial year 1997-98. The Indira Vikas Patras are shown as investment in the books of assessee since 1997-98. The Indira Vikas Patras are issued for certain denominations at half of the face value. The period of maturity varies on the basis of rate of interest and accumulation thereof. As per the provisions of Indira Vikas Patras Rule 1986 dated 5.11.1986 the Indira Vikas Patras are transferable. 13. At the time of encash...