Income from sale of Government Securities is ‘capital gains’, not ‘interest’ under DTAA

HIGH COURT OF BOMBAY Director of Income-tax (International Taxation) V/s. Credit Suisse First Boston (Cyprus) Ltd. IT APPEAL NO. 1026 OF 2011 JULY 9, 2012 JUDGMENT S.J. Vazifdar, J – This is an appeal under section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT) dismissing the appellant’s appeal and allowing, in part, the respondent’s cross objections. The appeal is admitted and, with the consent of the parties, heard finally on the following substantial questions of law : (I).  Whether interest can be said to...