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2023 (5) TMI 224 - MADRAS HIGH COURTReopening of assessment u/s 147 - Capital gain - Petitioner has sought exemption in respect of the entirety of the amount, capital gain arising out of transfer of shares received by it and has not offered the interest thereupon to tax - HELD THAT:- In the impugned order Assessing authority has rightly concluded that there is no capital gains that arises from the transaction since the entire transaction was a buyout of shares by virtue of order of the Apex Court. The officer, in this regard refers to the statement of the Apex Court that the transaction 'does not amount to shares being transferred inter vivos, nor can the payment for the shares be treated as deemed dividend'. Thus the clear inference that the officer has arrived at, is that there can be no instance of capital gain tax nor any levy u/s 2 (22) (e) of the Act dealing with deemed dividend. On the liability to interest on the sum of Rs.18.62 Crores, it is a timing difference, and the officer prima facie believes that the interest must be taxed in AY 2019-20 relatable to the year when the order was passed by the Apex Court on the ground of accrual. The petitioner would suggest that the receipt had been delayed and it only after a few years that the amounts had been received, such submission involves the appreciation of facts and are best considered by the authorities. Argument of petitioner to the effect that the taxability of the receipt has not been put to it in the show-cause notice is also devoid of merit, since the assessing authority has raised these issues specifically in the penultimate paragraph of the Annexure to notice u/s 148A(b). A notice u/s 148A(b) is not expected to be as detailed as order of assessment and it would suffice that the issue on the basis of which the re-assessment is proposed is outlined broadly therein. It is for the assessee/petitioner to respond on all aspects of the matter and seek clarifications, where it so requires.
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