https://www.taxtmi.com/caselaws?id=456435 ITAT Mumbai held that surplus realized on redemption of privately placed Non Convertible Debentures constitutes interest income, not capital gains. The tribunal distinguished debentures from shares, ruling that redemption represents debt repayment rather than asset extinguishment. Since NCDs were not traded on stock exchange and assessee surrendered them to issuing companies rather than selling in open market, no capital gains arose. Premium received was assessed as interest income under "Income from Other Sources," disallowing exemptions under sections 54F and 54EC which require capital gains. en-us Mon, 15 Apr 2024 00:00:00 +0530 Wed, 24 Jul 2024 21:19:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456435 ITAT Mumbai held that surplus realized on redemption of privately placed Non Convertible Debentures constitutes interest income, not capital gains. The tribunal distinguished debentures from shares, ruling that redemption represents debt repayment rather than asset extinguishment. Since NCDs were not traded on stock exchange and assessee surrendered them to issuing companies rather than selling in open market, no capital gains arose. Premium received was assessed as interest income under "Income from Other Sources," disallowing exemptions under sections 54F and 54EC which require capital gains. Case-Laws Income Tax Mon, 15 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456435