2008 (7) TMI 1083

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.... deep discount bonds by IDBI in pursuance of exercise of call options. 4. The facts, in brief, are that assessee is a practicing advocate. The IDBI had issued deep discount bonds in January/March, 1992. The assessee purchased 64 deep discount bonds between February and April, 1999 through Bombay Stock Exchange for a total cost of Rs. 4,90,480 which were held by the assessee as investments. These deep discount bonds were redeemed by IDBI on 31-3-2002 resulting into a gain of Rs. 2,77,520 which was offered by the assessee as long-term capital gain. The assessing officer asked the assessee as to why Circular No. 2 of 2002, dated 15-2-2002 issued by the CBDT should not be applied and, accordingly, such gain was to be treated as 'income f....

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....de, came under para 6.1 of Circular No. 15 of 2001, however, since the assessee had not offered any income to tax in the earlier years in absence of the said Circular, hence, computation methodology provided in that para could not be applied and, therefore, the said circular could not be made applicable in the case of assessee. He also submitted a copy of written note on the above aspects which also contained the details of case law relied on by the assessee. 6. The learned Departmental Representative, on the other hand, placed strong reliance on the order of revenue authorities and also submitted that circular was issued in the benefit of larger public, hence, it was to be followed. 7. We have considered the submissions made by both ....