2020 (9) TMI 821

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....ounds: "1(a). That on the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the action of the Assessing Officer in treating 'Government Securities' as Bonds or Debentures for the purpose of the third proviso (now fourth proviso) to section 48 of the Income-tax Act, 1961. 1(b). That the Ld. CIT(A) erred in upholding the action of the Assessing Officer in disallowing long term capital loss on sale of 'Government Securities' amounting to Rs. 237,98,30,607/-" 2. The learned counsel for the assessee, Shri S.K. Tulsiyan submitted that the only issue that arises for adjudication is whether the Ld. Assessing Officer is correct in treating the 'Government Securities' as bonds or debentures for the purpose of the t....

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....ven relief to the assessee. He read out the finding of the Tribunal from page 18 to 24 of the order of the Tribunal for the A.Y. 2010-11 and submitted that the decision of the Tribunal is legally incorrect for the reason that, any security given by the Government of India which yields a fixed rate of return, is a bond and nothing else. He argues that the term bond 'encourages' within its meaning, a number of instruments including, promissory notes, bonds or securities given by the Government. He argued that the 'Government Securities' are only a subspecies' of bonds. He further argued that the Government Securities in question carried a fixed rate of return and hence no benefit of indexation should be granted on sale of such Government Secu....