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2013 (12) TMI 613 - HC - Income TaxStay for recovery of demand and removal of provisional attachment u/s 281B - Held that:- The tax demand or issues are inchoate and it may take a considerable time before the issue is finally settled - The dispute may be taken to the Supreme Court for final adjudication and this is a time consuming process - The final outcome is uncertain and not free from doubt. Even if the matter is decided against Nokia India/Nokia Finland, the quantum of demand itself in respect of deduction under Section 40(a)(i), interest and penalty including penalty under Section 271C/271(1)(c) of the Act would depend upon several factors which may take their own time to decide. In view of the closing down or keeping out Nokia India, when Nokia Finland is globally transferring and disposing of their hand devices/mobile phones business, the attachment of assets may not be the sound and considered decision or even in the interest of the Revenue as there could be sharp decline in the market value of the assets of Nokia India. The interim order dated 26th September, 2013, in particular clause (1) and (3) is passed to allow sale of assets by Nokia India to Microsoft/Microsoft International subject to fulfilment of certain conditions - Nokia Finland, will receive about Rs.31,000 crores pursuant to the global transfer of hand devices/mobile phones from the Microsoft International - It will continue to exist and operate, even after handset/mobile phone business is sold to Microsoft International as it being a listed company having several businesses and business interests. Nokia Finland, in addition to the undertaking or letter of guarantee already quoted, will file another letter in form of guarantee/undertaking incorporating the terms and conditions and file the said letter/undertaking with the income tax authorities - It will pay the tax dues dues of the company sold out to the extent permissible and recoverable under the provisions of the Act - Partly allowed in favour of assessee.
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