2008 (7) TMI 20

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... For the Respondent : Mr. Sampath Krishnan and Mr. K Sampath BADAR DURREZ AHMED, J  These four appeals relate to the assessment years 1992-93, 1993-94, 1994-95, and 1995-96 and they are directed against the common order passed by the Income Tax Appellate Tribunal dated 31.01.2007. 2.   The issue sought to be raised by the appellant pertains to the arrangement made between ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he condition that the assessee would buy-back the debentures after conversion after 36 months. So that the mutual funds are fully compensated for subscribing and retaining the fully convertible debentures on behalf of the assessee, the assessee agreed to pay service charges to the mutual funds at pre-determined rates. The question that is sought to be raised by the learned counsel for the appellan....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....inancing arrangement wherein mutual funds were assured fixed rates of returns and the assessee was able to obtain the fully convertible debentures of sale debentures only with a view to make profits. The tribunal also noted that the rights issue was, in fact, over subscribed by 15 % and consequently, the tribunal negated the observations of the Assessing Officer that the entire deal was arranged t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee was because it appeared to the assessee that in view of the then prevailing market condition, it would make substantial profits by selling the fully convertible debentures after conversion. It is another matter that by the time the debentures were converted and the shares became sale-able, the market crashed because of the infamous Harshad Mehta's scam. The tribunal concluded that this did ....