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TMI Blog2019 (5) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... compensation received by the appellant from Oracle Global (Mauritius) Ltd. for delay in payment of proceeds of shares tendered under the open offer includible in Capital Gains as against Interest Income ?" 2. The Respondent Assessee is a limited company. Facts leading to this Appeal may be noted from the Judgment of the Tribunal in which it is recorded as under : "We have heard the rival submissions and perused the material placed before us. We find that an open offer was made by Oracle to the share holders of Iflex at the price of Rs. 1,475/per share, that the open offer indicated that additional offer of Rs. 11.35 per share was to be payable to the share holders, that as per the letter of open offer the additional consideration per sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of open offer the additional consideration per share was to be paid due to delay in making the open offer and dispatch the letter of the offer based on the time line prescribed by SEBI, that later on the consideration of open offer was revised to Rs. 2,084/per share, that the additional consideration for delay was revised to Rs. 16/per share, that the open offer letter and public announcement indicated that a revised offer of Rs. 2,100/per share (including additional consideration of Rs. 16/) was to be payable for the shares tendered by the share holders under the open offer, that in response to the open offer the assessee tendered its holding of 13,97,879 shares of Iflex, that it received Rs. 2,89,77,45,900/that the said sum included add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter it has to be taken as a part of original transaction. It is noteworthy that in the original offer interest @ Rs. 11.35 per share was offered by Oracle. After considering the delay in dispatch letter and other relevant factors if it decided to increase the interest @ 16 per share it was a business decision. The assessee had no control over the decision making process of Oracle. If we see the transaction from the debtor/creditor angle it is clear that there was no such relationship between the assessee and Oracle. The assessee owned shares of Iflex and in response to the open letter by Oracle it decided to sell the sharesit was a pure and simple case of selling of shares. The assessee had not entered into any negotiations with Oracle a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case and therefore, admission of the Department's Appeal in case of Genesis Indian Investment Company Ltd. (supra), would not mean that the present Appeal also must be admitted. 8. Having heard the learned Counsel for the parties, undisputed facts are that the sum of Rs. 16/per share which resulted into additional receipt of Rs. 2.20 Crores to the Assessee, was part of the offer for sale of shares made by the Assessee. The reason for increasing the offer by the said sum of Rs. 16 per share may be on account of delay in issuance of the shares, nevertheless, the same was nothing but part of the sale price of the share. The revised offer which the company announced for issuance of the shares quoted the price of the share at Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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