https://www.taxtmi.com/caselaws?id=310732 ITAT Pune held that redemption premium on FCCBs borrowed from outside India and utilized for overseas investments does not constitute taxable income in India. The assessee was not required to deduct TDS under section 196C read with section 115AC as the interest income did not accrue or arise in India per section 9(1)(v). Following SC precedent in GE India Technology case, when FCCBs are used for overseas investments, the exclusive clause in section 9(1)(v) exempts such interest from Indian taxation. Consequently, penalty under section 271C for failure to deduct TDS was also deleted as the underlying assessment was quashed. en-us Tue, 03 Jan 2023 00:00:00 +0530 Thu, 09 Nov 2023 20:50:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310732 ITAT Pune held that redemption premium on FCCBs borrowed from outside India and utilized for overseas investments does not constitute taxable income in India. The assessee was not required to deduct TDS under section 196C read with section 115AC as the interest income did not accrue or arise in India per section 9(1)(v). Following SC precedent in GE India Technology case, when FCCBs are used for overseas investments, the exclusive clause in section 9(1)(v) exempts such interest from Indian taxation. Consequently, penalty under section 271C for failure to deduct TDS was also deleted as the underlying assessment was quashed. Case-Laws Income Tax Tue, 03 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310732