Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

2018 (9) TMI 1006

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....reated as revenue receipt as held by the AO. 3. The assessee is a film actor. For the assessment year under dispute, assessee filed his return of income on 29.09.2011 declaring total income at Rs. 75,09,219/-. During the assessment proceedings the AO noticing that though the assessee has received US $1.5 million, equivalent to Rs. 6,97,94,580/- from one Sudesh Iyer but has not offered it for taxation. He, therefore, called upon the assessee to explain the reason thereof. In response, it was submitted by the assessee that he along with other nonresident individuals proposed to bring Sony TV Channel to India. For that purpose a company by the name Atlas EqufinPvt. Ltd. (Atlas) was incorporated in India to hold shares in Multi Screen Media In....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sting an investigation in to the matteras theassessee never signed the mandate. After filing of the aforesaid complaint by the assessee, the other party approached the assessee to settle the matter amicably and on 03.01.2011 a deed of settlement was executed between the assessee and Shri Sudesh Iyer for settlement of the dispute. As per the terms of the settlement deed Shri Sudesh Iyer agreed to pay a sum of US $3,500,000/- on the condition that the assessee will withdraw the criminal complaint filed against him. As per the terms of agreement the amount was to be paid in two instalments. The first instalment of US $1.5 million was to be paid immediately on confirmation from the Economic Offence Wing that assessee had withdrawn the complaint....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ount received by the assessee being in the nature of compensation/damages for withdrawal of a criminal complaint is a capital receipt and cannot be treated as income as defined under Section 2(24) of the Act. In support of such contention he relied upon the decision of Hon'ble Bombay High Court in the case of CIT vs. Amar Dye Chem Ltd. (1994) 74 Taxman 254 and the decision of the ITAT Mumbai Bench in the case of ITO vs. Vinay P. Kaarve (2015) 152 ITD 58. 7. We have heard rival submissions and perused material on record. Undisputed facts are, due to impersonation/forging of assessee's signature in respect of sale of shareof a company, the assessee filed a criminal complaint before the Economic Offence Wing. It is a fact on record that t....