1997 (5) TMI 83

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.... on11th Feb., 1991. It had acquired 885 Special Bearer Bonds issued by the Central Government under the Special Bearer Bonds (Immunities and Exemptions) Act, 1981 (for short the "Bearer Bonds Act"). During the relevant previous year which ended on31st March, 1992, the assessee encashed the above bonds on maturity at a premium of Rs. 2,000 per bond. The total amount realised by the assessee on such redemption was: . . Rs. (i) Against the face value of Rs. 10,000 per bond (885 bonds) 88,50,000 (ii) As premium of Rs. 2000 per bond for 885 bonds : 17,70,000 . . 1,06,20,000 The assessee claimed total exemption of the above sum in terms of the Bearer Bonds Act. The Asstt. CIT however, asked the assessee to explain the source of the f....

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....nds Scheme of 1981 which was for bringing out concealed income. 3. The learned counsel for the assessee Dr. S. Narayanan during the course of arguments submitted that CIT(A) has erred on both the counts. Firstly s. 5(b) of the Bearer Bonds Act inserted a new sub-cl. (ib) in sub-s. (15) of s. 10 of IT Act as under: "(ib) Premium on redemption of Special Bearer Bonds, 1991." The learned CIT(A) was, therefore, in error in thinking that there was no reference to s. 10(15)(ib) in the Bearer Bonds Act. The above-mentioned amendment was duly incorporated in the IT Act w.e.f.12th Jan., 1981. However, Direct Tax Laws (Amendment) Bill, 1987, proposed w.e.f.1st April, 1989, deletion of above provision along with various other clauses of exemption u....