Loss arising on assignment of right to receive Iraqi debt in lieu of bonds issued by Indian Govt. wa

IT : Indian Government issued compensation bonds to assessee in consideration of assignment of debt receivables (in US dollars) from Iraqi Government. The assessee contended that the Iraqi debt was a capital asset which was transferred and that the full value of such consideration on account of transfer fell short of indexed cost of acquisition of bonds. Thus, assessee claimed loss under the head "Capital Gain" on account of assignment of right to receive its debts from Iraqi Government.