Held, that the foreign currency convertible bond proceeds were utilized for setting up a new manufacturing facility or expansion of manufacturing facility. The discount received through buy-back of the foreign currency convertible bonds at a discounted price was not income, it has to be treated as capital receipt. (AY. 2009-10, 2010-11)
Paramount Communications Ltd. v. Dy.CIT (2021) 90 ITR 20 (Delhi)(Trib.)
S. 4 : Charge of income-tax-Foreign currency-Convertible bonds-Buy back of foreign currency bonds at discounted price-Foreign currency convertible bond proceeds were utilized for setting up a new manufacturing facility or expansion of manufacturing facility-Discount is capital receipt. [S. 28(i)]