https://www.taxtmi.com/caselaws?id=211837 Compulsorily convertible debentures were treated as debt instruments until discharge, and the agreed return linked to holding period and fixed mechanics was characterised as interest rather than exempt capital gains under the India-Mauritius treaty. The substance-over-form approach was applied to the wider arrangement, including contractual terms, shareholding structure, option features, and actual control, so the transaction was assessed by its real commercial effect rather than its formal label. On that basis, treaty capital gains relief was denied and the amount attributable to the debentures was taxable as interest under the Income-tax Act and the treaty interest article. en-us Wed, 21 Mar 2012 00:00:00 +0530 Wed, 11 Jul 2012 14:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211837 Compulsorily convertible debentures were treated as debt instruments until discharge, and the agreed return linked to holding period and fixed mechanics was characterised as interest rather than exempt capital gains under the India-Mauritius treaty. The substance-over-form approach was applied to the wider arrangement, including contractual terms, shareholding structure, option features, and actual control, so the transaction was assessed by its real commercial effect rather than its formal label. On that basis, treaty capital gains relief was denied and the amount attributable to the debentures was taxable as interest under the Income-tax Act and the treaty interest article. Case-Laws Income Tax Wed, 21 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211837