Premium on redemption of privately placed NCDs is interest income, not capital gains. Long-term capital loss set-off restored. No perquisite on flat purchase.

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....Correct head of income for premium on redemption of privately placed non-convertible debentures (NCDs) is interest income under Income from Other Sources, not capital gains, as NCDs are debt instruments and redemption amounts to realization of money advanced by creditor. Set-off of long-term capital loss against long-term capital gains restored to Assessing Officer for fresh computation. Disallowance u/s 14A relating to exempt income to be computed considering dividend yielding investments only as per precedent. No employer-employee relationship in tripartite agreement for flat purchase, hence no perquisite u/s 17(2)(iii)(a) for difference between actual cost and stamp duty value unless actual fair market value established.....