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TMI Blog2002 (8) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... ve occurred, by reason of which it is necessary to pass an interim order and allow the matter to be mentioned before the regular Bench, with liberty therefor being reserved for both sides, after a period of a fortnight from date. The stakes involved herein are very high. The assessees are three English companies, and their cases were dealt with by the impugned order of the Tribunal in a single judgment. If the Tribunal's judgment were to stand fully and completely today the rough liability of the three assessees taken in the aggregate would be as follows. On account of capital gains tax Rs. 21 crores; on account of interest attracted thereon Rs. 12 crores; and on account of penalty imposed Rs. 26 crores, but the penalty matter is before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly by exhausting of the legal forums available in India, the matter, as we gather, would be so delayed as to make the transfer delayed beyond the acceptable time limits of the assessees. Thus by communications both to the Income-tax Department and to the Reserve Bank of India a provisional figure was worked out regarding payment of capital gains tax, and for obtaining the sanction of the Reserve Bank of India thereon for effecting the transfer. The sum which was worked out at that stage was a little above Rs.10 crores. The bank guarantees were duly furnished therefor and permission obtained from the Reserve Bank of India, with this condition superadded, that the shares would not be retransferred by the Dutch company without further subse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pending in regard thereto before the Tribunal. Needless to mention the decision on the substance might have a bearing upon the decision of the Tribunal on the aspect of the penalty leviable, if any. The assessees carried the appeal to the Appellate Commissioner in the Department and won there. Having won the first appeal, there was no liability upon them and the entire deposit of Rs.10 crores plus was got released and taken away by the assessees. This is exactly where we had carried a wrong impression with us for the last nine days. We make it clear that learned counsel of neither side is to blame for our wrong impression. If anybody is to blame it is ourselves and perhaps a certain amount of haste which we showed in the matter in comin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese circumstances, we make the following observations, bearing in mind that the tax liability is Rs.21 crores, the interest liability is Rs.12 crores; we forget for the present the penalty liability which is not really before us yet, because the Tribunal is still to decide on it. It seems from the international wealth of Mr. Bajoria's clients that they might well be willing to put in a sufficient security and then have their appeal heard out. But some time has to be allowed in this regard to see whether the security would be furnished as a matter of course or the usual adversary system has to be followed in regard to the hearing out of the stay application before the hearing of the appeals. If we were to hear the matter further, our sen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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