2023 (4) TMI 1336

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....ons to enable final disposal of these matters, even at the stage of admission. 2. I have had occasion to consider an identical challenge in W.P. No. 12918 of 2023 and by order dated 26.04.2023 have dismissed the Writ Petition in the following terms: The petitioner has challenged two notices under Section 148A(b) of the Income-Tax Act, 1961 dated 01.03.2023 and 21.03.2023, an order under Section 148(A)(d) dated 06.04.2023 and a notice under Section 148 of the Income-Tax Act, dated 06.04.2023. 2. The main grounds put forth by the petitioner assailing the aforesaid proceedings are that (i) there is no liability to tax in respect of the transaction of buyout of shares of S.V. Global Mills Limited consequent upon the order o....

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....spondents for the purchase of all the respondent's shares in the Company. Mr. Kapil Sibal, learned Senior Counsel wished to examine on that date in how much time this payment can be made. Today, we are told that Mr. P. Chidambaram's client's own offer in this Court was for land and not for money. We reiterate that we were told this on the last occasion, after which we passed the order dated 10.05.2018. As a result, the shares, which we are informed is no longer the subject matter of any attachment, and are free to be sold, should be purchased by Respondent No. 7 at the price of Rs. 100 Crores, to be paid by Mr. Kapil Sibal's client within a period of 9 months from today. As a result of this share purchase....

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....as follows:- "Following information has been disseminated as High Risk CRIU/VRU case pertaining to AY 2019- 20 on Insight Portal selected under Risk Management Strategy (RMS) cycle 2 formulated by the CBDT: The Hon'ble Supreme Cout of India vide order dated 17.05.2018 had approved a buy-out of shares held by following entities in M/s.SV Global Mills Limited: 1. M/s. Satluj Credit and Holdings Pvt Ltd 2. M/s. Calcom Credit and Holdings Pvt Ltd (840000 shares) 3. M/s. Rajat Chakra Credit and Holdings Pvt Ltd (840000 shares) 4. M/s. Sheetala Credit and Holdings Pvt Ltd (850000 shares) 5. M/s. Twentieth Century Apco Leasing Pvt Ltd(288440 shares) 6. Smt. Rajalakshmi (57....

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.... value) from the Government of Puducherry as per the order of Hon'ble High Court of Madras, vide order dated 18.03.2021." 9. His line of thinking is thus clear, to the effect that while the assessee has sought exemption in respect of the amount of Rs. 18.62 crores (approx), the assessing authority was of the view that the Apex Court had never indicated anywhere that the receipt should be treated as exempt under the Income-Tax Act. Furthermore, he has also expressed the view that the interest thereupon is liable to tax in AY 2019- 20. 10. The argument of the petitioner revolves around the interpretation of Section 56(2)(x) to state that the amount of Rs. 18.62 crores (approx) would not attract the rigour of the statutor....

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.... that the interest must be taxed in AY 2019-20 relatable to the year when the order was passed by the Apex Court on the ground of accrual. Though the petitioner would suggest that the receipt had been delayed and it only after a few years that the amounts had been received, such submission involves the appreciation of facts and are best considered by the authorities. 14. The argument of petitioner to the effect that the taxability of the receipt has not been put to it in the showcause notice is also devoid of merit, since the assessing authority has raised these issues specifically in the penultimate paragraph of the Annexure to notice under Section 148A(b). A notice under Section 148A(b) is not expected to be as detailed as order ....