2014 (7) TMI 12

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.... ORDER P. C. 1] This appeal is directed against the order passed by the Income Tax Appellate Tribunal on 9th September, 2011. The assessment year in question is 2001-02. 2] The limited issue arising out of the question projected as a substantial question of law, is with regard to the use of repatriated funds. 3] The factual position and which appears to be undisputed is that the retur....

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.... the earstwhile Tata Power Co. had issued Euro Notes in 1997 for raising funds for financing the companies' ongoing and future capital expenditure programmes and for general corporate purposes. The companies intended to expand their generating capacity to meet the growing demand of their existing customers as well as to add new direct customers in the License area. The entire proceeds raised a....

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....ry. The gain is, therefore, on capital account and not in the nature of income. Further, the gain has arisen at that point of time when the funds were repatriated to India. If the Notes were issued for meeting capital expenditure, and remained outside India, the taxability has to be determined at the point of time when the profit arose. Their subsequent utilization was, therefore, not relevant. It....