9911796707
TMI Blog2024 (7) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... e department has assailed the order of CIT(A) by raising following grounds of appeal:- (i) "Whether on the facts and circumstances of the case the Ld.CIT(A) has erred in allowing the appeal of the assessee by holding that the assessee is not 'assessee in default' as it had rightly effected the applicable TDS on the long term capital gain arising in the hands of the sellers of the shares without appreciating the fact that valuation of shares by applying DCF method based on the premise of going concern of the company whose shares have been transacted in this case i.e. UEM India Pvt. Ltd. is in contradiction to the financials of the company as independent auditors had also raised serious doubts about the company's ability to cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records are; the assessee is a non-resident multinational conglomerate with its headquarters in Japan. In Financial Year 2015-16 relevant to the assessment year under appeal, the assessee had purchased 12,70,276 unlisted equity shares of UEM India P. Ltd. from its non-resident individual shareholders. The details of said shareholders, consideration paid, TDS, etc. are as under:- Sellers No. of shares purchases Purchase price per share Total consideration Capital gain TDS @ 11.536% (including surcharge & cess) Sangita Kshetry 5,74,418 248.12 142,524,594 123,001,903 14,189,500 Hersh Kshetry 6,27,218 248.12 155,625,330 151,965,755 17,530,770 Nina Kshetry 68,640 248.12 17,030,957 16,712,469 1,927,950 4. The assessee at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orting the impugned order prayed for up-holding the same. The ld. Counsel for assessee stated that the Assessing Officer has exceeded his jurisdiction in changing the nature of transaction in proceedings u/s. 201 of the Act. He further contended that the assessee had deducted tax at source on the payments made for purchase of shares. Once the assessee has deducted tax at source and has deposited the same to Govt. exchequer, the assessee cannot be held to be "assessee in default". 8. We have heard the submissions made by rival sides and have examined the orders of authorities below. It is an undisputed fact that the assessee has deducted tax at source on the payments made for purchase of shares from the non-resident sellers namely; Sangista ..... X X X X Extracts X X X X X X X X Extracts X X X X
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