Assessee, in terms of RBI Circular No. 39 dated 8-12-2008, sought permission of RBI to buy-back Foreign Currency Convertible Bonds (FCCB), which was granted . Accordingly, assessee purchased 17 bonds at a discount of 25 per cent, and earned discount of certain amount. Assessee claimed that discount received on FCCB buy-back being capital receipt, was not in nature of income. AO  treating same as income under section 28(iv), added same to income. Tribunal held that since assessee had repurchased certain FCCB at a discount and proceeds of these bonds was utilized partly for investment in foreign subsidiaries and partly for ongoing capitalization programs, gains were on capital account which could not be brought to tax under section 28(iv) of the Act. Tribunal  also held that  benefit to be received by assessee has to be in some form other than in shape of money so as to bring same within ambit of section 28(iv) and since discount amount represented cash/money, provisions of section 28(iv) were inapplicable. (AY. 2010-11)