Law and Practice : Digital eBook
Research is most exciting & rewarding
Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (5) TMI AT This
Forgot password New User/ Regiser
Register to get Live Demo
2023 (5) TMI 1098 - AT - Income Tax
Stay on recovery of outstanding demand - demand arises because of treatment given to the gain derived by the assessee from sale of compulsory convertible preference shares (CCPS) as short term capital gain - assessee is a non-resident individual - HELD THAT:- As in the case of DIT vs. Mitsubishi Corporation [2021 (9) TMI 875 - SUPREME COURT] we find substantial merit in the submissions of assessee that interest u/s. 234B is not leviable as the assessee is a non-resident and tax has been withheld on the gain derived. So, if the interest component is removed, balance tax demand works out to Rs. 248,35,14,727/-. Whereas, the assessee has paid tax by way of TDS amounting to Rs.153,23,33,751/-, which covers more than 50% of the disputed tax liability of the assessee.
Therefore assessee cannot be directed to pay any further amount out of the disputed demand. However, considering the fact that the assessee is a non-resident, to secure the interest of Revenue, we direct the assessee to furnish a bank guarantee for an amount of Rs.10.00 crores before the Ao on or before 2nd of June, 2023, which shall remain in force till the disposal of the corresponding appeal of the assessee.
Subject to furnishing of such bank guarantee within the stipulated date, recovery of the balance outstanding demand shall be stayed for a period of 180 days from the date of this order or till disposal of the corresponding appeal of the assessee, whichever is earlier. It is made clear, in case the assessee seeks any adjournment without compelling reasons, there is likelihood of vacation of this stay order.