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Case Law Details

Case Name : Ujagar Singh Oberoi Vs ACIT (ITAT Delhi)
Appeal Number : ITA No. 3062/(Del.)/ 07
Date of Judgement/Order : 25/05/2009
Related Assessment Year : 2003- 2004
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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 encashment of Indira Vkas Patra at maturity there is no transfer involved. This view is also supported by the decision of ITAT D Bench of ITA No. 8395/BOM/95 dated 21.1.2003. On the maturity the difference between the investment and the maturity value are taxable as a normal income.

14. There are some similarities in the Indira Vikas Patras and Deep Discount Bonds :

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