TaxTMI 
TaxTMI 
2019 (1) TMI 214
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....submitted that assessee has filed the return of income declaring total income of Rs. 54,51,110/-. The case was selected for scrutiny on the reasons that there is large increase in investment in unlisted equities during the year. The A.O. noted from the audited accounts that assessee has received Rs. 2070.04 crores (including Rs. 246.84 crores received during the year) from Commercial Union International Holding Limited (CUIH) as option money. The option money has to be adjusted against further reduction of shareholdings in M/s. Aviva Life Insurance Corporation Pvt. Ltd., by the assessee in favour of CUIH, U.K. at a price to be determined at the time of transfer of shares. The revenue, if any, will be accounted for in the years of transfer o....
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....f sterilization of assessee's share due to option of purchase of shares granted to CUIH, it was agreed amongst the parties that CUIH shall pay option price to assessee. Such option price as would have been received from CUIH, would be adjusted and considered at the time of sale of shares by assessee to CUIH. In case the above option price so received by the assessee is in excess of selling price determinable in terms of the agreement, then the assessee would be under obligation to refund the excess option price so received. Learned Counsel for the Assessee submitted that since the agreement in question is dated 07.08.2001, therefore, it was examined in earlier years by the A.O. and explanation of assessee has been accepted in the assessmen....
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....d that an early hearing in the above matter may also be granted and appeal of assessee may be fixed on the same day i.e., on 14.01.2019. 5. On the other hand, Ld. D.R. similarly submitted that appeals of assessee under section 263 of the I.T. Act for the A.Ys. 2013-2014 and 2014-2015 on the same issue is fixed before the Tribunal on 14.01.2019 and have also submitted that appeal may also be fixed for the same date. He has further submitted that though in earlier years A.O. has passed the Orders under section 143(3) of the I.T. Act, the A.O. has not raised any query on the nature of taxability of option money in scrutiny proceedings. He has submitted that in A.Ys. 2013-2014 and 2014-2015, the Ld. Pr. CIT has reopened the assessments so fra....
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....3-2014 and 2014-2015 though the contention of assessee have been accepted by the A.O. but the Ld. Pr. CIT has reopened the assessments under section 263 of the I.T. Act against which, appeals of the assessee are pending before the Tribunal on 14.01.2019. Therefore, without commenting on the merits of the case, we are of the view that assessee has a prima facie case for grant of absolute stay till the decision of the appeal particularly when assessee has paid substantial demand of Rs. 36 crores against outstanding demand. It is a case where assessee has declared income of Rs. 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 Rs. 247.39 crores. The balance of conven....