TMI Blog2019 (1) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. It is a case where assessee has declared income of ₹ 54,51,114/- in the return of income but due to the above addition, assessment have been framed against the assessee in a sum of ₹ 247.39 crores. The balance of convenience also lies in favour of assessee and in case, entire demand is recovered against the assessee, the purpose of the filing of the appeal would be frustrated. The interest of Revenue is also protected because the assessee has already paid substantial demand to the Revenue against the outstanding demand. The appeal of assessee is pending for disposal and appeals of assessee for another years on the same issue are also pending for disposal - we stay the entire outstanding demand for a period of six months o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue, if any, will be accounted for in the years of transfer of shares. The explanation of assessee was called for as to why the amount of ₹ 246.84 crores should not be treated as taxable income of the assessee in the year under consideration. The assessee explained impugned amount of option money is refundable security deposit. The A.O. after examining the reply of the assessee held that in the present case assessee has received option price every year and it is not in any way linked to divestment of stake. Therefore, same is chargeable to tax as business income. The A.O. accordingly held that the amount of ₹ 246.84 crores received by the assessee this year is taxable in the hands of the assessee as business income. The A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by the A.O. and explanation of assessee has been accepted in the assessment orders under section 143(3) for A.Ys. 2005-2006 to 2014-2015. Copies of the same are filed at pages 201 to 208 of the stay application. He has submitted that for the first time in assessment year under appeal i.e., 2015-2016 the A.O. was of the view that option price is business income and taxable as revenue receipt. He has submitted that in fact it is on account of capital receipt and is not taxable. He has submitted that nature of option price as received by the assessee is totally linked with the capital investment and would be capital receipt in the hands of assessee and will form part of sale consideration at the time of exist. He has submitted that in A.Y. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n A.Ys. 2013-2014 and 2014-2015, the Ld. Pr. CIT has reopened the assessments so framed under section 263 of the I.T. Act against which appeals are pending before the Tribunal on 14.01.2019. The Ld. D.R. however, admitted that the assessee has paid an amount of ₹ 36 crores against the outstanding demand. The Ld. D.R. further submitted that no coercive steps have been taken by the A.O. for recovery of the outstanding demand in assessment year under appeal and assessee has voluntarily paid the amount in question as is referred to above. The Ld. D.R. submitted that the present issue is involved in many years, therefore, stay against the outstanding demand may not be granted as it would severely impact the Revenue particularly when assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment have been framed against the assessee in a sum of ₹ 247.39 crores. The balance of convenience also lies in favour of assessee and in case, entire demand is recovered against the assessee, the purpose of the filing of the appeal would be frustrated. The interest of Revenue is also protected because the assessee has already paid substantial demand to the Revenue against the outstanding demand. The appeal of assessee is pending for disposal and appeals of assessee for another years on the same issue are also pending for disposal. Therefore, considering the totality of the facts and circumstances of the case, we stay the entire outstanding demand for a period of six months or disposal of the appeal whichever may expires earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
