9911796707
TMI Blog2021 (9) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... delay, as under:- "To, The Sr. Registrar, Income Tax Appellate Tribunal, Mumbai. Sir, Sub: Request for condonation of delay in filing Appeal U/s before ITAT in the case of Mrs. Ramona Pinto for A.Y. 2010-11. ***** Kindly refer to the above. 2. In the instant case, the order of the CIT(A) vide order No. CIT(A)-34/DCIT 23{3)/IT-91/15-16 dated 03.02.2017 was received in this office on 23rd March 2017. In the order, the Assessee's appeal was dismissed. Thus the appeal, if any, was to be filed before the ITAT on or before 23rd May 2017, the time barring date. 3. It is humbly submitted that, in the instant case, due to oversight and also the fact that the CIT(A) has dismissed the appeal of the assessee, the Appeal could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idual. For the assessment year under dispute, assessee had filed her return of income on 16-07-2010 declaring total income of Rs. 18,91,589/-. Subsequently, the assessing officer received information from the assessing officer having jurisdiction over another assessee, viz. M/s P.N. Writer & Co that the assessee has been awarded an amount of Rs. 28 crores as settlement through an arbitration award and a part of that award has been received by the assessee in the impugned assessment year. After issuing a show cause notice to the assessee to explain why the amount awarded by the Arbitrator should not be treated as income and considering assesse's explanation, the assessing officer added back an amount of Rs. 28 crores to the income of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) holding that the amount of Rs. 28 crores awarded by the Arbitrator is taxable as "Income from other sources" under section 56(1) of the Act, both, the assessee and the revenue filed appeals in the Tribunal. While deciding assessee's appeal in ITA No.3523/Mum/2017 dated 02-04-2018, the Tribunal upheld the decision of learned Commissioner (Appeals) with the following observations:- "20. As regards the merits of the case, we find that the assessee has received an arbitration award for Rs. 28 crores, upon relinquishment of her rights in the partnership of M/s. P. N. Writer & Co. Here it may be gainful to recount the brief history of the case which leads to the arbitration ward. The assessee was a partner in M/s P.N.Writer & Co. A fresh par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n award was given not only for withdrawal of Suit against partners and partnership firm but it was also granted for withdrawing all the Suits against entities owned and controlled by the partners. (v) Condition No.9 of Consent Terms stated that the appellant and her husband Etienne Pinto had no interest in properties listed in clause 9 and they would ensure execution of necessary documents for transfer of properties which presently stood in their names in favour of existing partners. This condition had no reference with the retirement of the appellant from the partnership firm. (vi) As per condition no.12, the appellant's husband was also required to sign the Consent Terms in acceptance of his obligations as set out in the Consent T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully paid up in Ocean air Transport and Investment Company Pvt. Ltd. held in the name of the appellant which has no connection with her interest in the firm or the assets of the firm. ii. 2001 equity shares of Rs. 1,000 each fully paid up in JOSCO International Shipping Agency Pvt. Ltd. held in the name of Mr. Etienne Pinto, husband of the appellant, which has no connection with her interest in the firm or the assets of the firm. 23. From the above, we agree with the ld. Commissioner of Income Tax (Appeals) that when the arbitration award was given in consideration of the assessee giving certain rights and interests in assets which included rights and interests in assets which have not even a remote connection with her interest in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itration Award was never given. As rightly observed by the ld. Commissioner of Income Tax (Appeals) that the retirement of a partner from the firm has to be an evident fact and is not required to be indirectly inferred or to be guessed in substance. The assessee has received a consideration in lieu of a composite bundle of conditions which included giving up her rights and interests in assets which have no connection with her interest in the firm or its assets and also for withdrawal of all suits/legal proceedings filed by her against the other persons and against firms and entities owned or controlled by them. 25. As rightly held by the ld. Commissioner of Income Tax (Appeals) since the Arbitration Award is in cash on the touch stone of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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