TaxTMI 
TaxTMI 
2024 (8) TMI 1082
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....Nav Technology Pvt. Ltd. has been shown to be the transferor of the said property, the entire tax liability of the transaction would fall upon the said company, which has now become the property of the decree holder by virtue of the said consent decree, upon Section 50-C of the Income Tax Act, 1961. 2. During hearing of the execution proceeding the learned counsel of the judgement debtor no. 2 had undertaken before the court that his client would comply with all the requisite obligations under the consent decree and he has further undertaken that his client shall file an affidavit stating that the tax responsibility of the relevant transaction shall be upon the judgement-debtor no. 2. Subsequently, the judgement debtor no. 2 refused to submit such an undertaking, and without changing the learned counsel who undertook on behalf of the judgement-debtor, the case was started to be represented by another lawyer of the judgement-debtor no. 2 on the ground of illness of the previous learned counsel. 3. When the judgement-debtor no. 2 refused to submit the relevant affidavit as aforesaid, the decree-holder filed the IA No. GA 1 of 2024 praying for:- "(a) For direction upon ....
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....SCC 615 (Barkat Ali & Anr. Vs. Badrinarain (Dead) by LRs.), AIR 2009 Cal 24 (Indu Bhusan Jana Vs. Union of India), (2018) 10 SCC 707 (Suzuki Parasrampuria Suitings Private Limited Vs. Official Liquidator of Mahendra Petrochemicals Limited (In Liquidation) & Ors.), (2010) 10 SCC 165 (Shyam Telelink Limited Now Sistema Shyam Teleservices Limited Vs. Union of India) and 2023 SCC Online SC 1395 (Pradeep Mehra Vs. Harijivan J. Jethwa (Since Deceased Thr. Lrs.) & Ors.). 6. The learned counsel of the decree-holder has also placed the judicial decision reported at (1973) 2 SCC 467 (Harnandrai Badridas Vs. Debidutt Bhagwati Prasad & Ors.) to buttress his law point that the Executing Court has been empowered to determine all questions between the parties in connection with the execution of relevant decree, and filing of separate suit has been discouraged. Therefore, this court is under an obligation to determine the present issue. 7. Provisions of Section 56-B (i) & 50-C of the Income Tax Act, 1961 have also been placed before this court for consideration. Attention of this court has also been drawn to Sections 46 (1) & 56 (1) of the Companies Act, 2013 which deal with signed transcrip....
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.... namely Nav Technology Private Limited. 2. The defendant no. 1 namely Sushant Agarwal (HUF) is the majority shareholder of Nav Technology Private Limited having 85.5% of shares of which the plaintiff and other defendants are coparceners. The plaintiff and the defendant nos. 3, 4 and 5 do not wish to continue as member and co-parceners of Sushant Agrawal and has agreed to release and relinquish all their right, title and interest in favour of Sushant Agrawal (HUF) the defendant no. 1 herein. 3. Manju Agrawal, Niharika Agarwal and Anmol Agarwal being the defendant nos. 3, 4 and the plaintiff shall resign as the directors of Nav Technology Private Limited and Sushant Agarwal the defendant no. 2 will be reinstated as director in the said company Nav Technology Private Limited and the other directors in the said company shall be appointed/nominated by defendant no. 2. 4. All other properties/assets belonging either to Sushant Agarwal (HUF) the defendant no. 1 and Nav Technology Private Limited shall belong to the defendant no. 2, who shall be entitled to use and enjoy the same without any interference, claim and/or interest by the other parties in any manner w....
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..... 2 in their favour, particulars of said instruments/fixed deposits, LIC policies are as follows.................................................. 14. The plaintiff, defendant nos. 4 and 5 shall execute all necessary documents that may be required for transfer of the benefit of aforesaid policies/fixed deposits, investments / financial instruments in favour of Sushant Agarwal. 15. That the defendant nos. 2 and 3 shall file the application for divorce by mutual consent before the appropriate court of law. 16. That the defendant nos. 2 and 3 shall execute and sign all such documents that may be necessary for obtaining the decree for divorce and shall make themselves present in the court of law as and when required. 17. That all the pending disputes as on this date between the parties are settled including C.P. No. 80 of 2013 pending before National Company Law Tribunal through this memorandum and none of the parties will initiate any new civil/criminal case in the matter any further. 18. That C.S. No. 201 of 2015 be decreed and disposed of in light of the aforesaid settlement." 15. From the above as well as the tabular statement of the ....
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....The Hon'ble JUSTICE APURBA SINHA RAY Date : 22nd DECEMBER, 2023. Mr. Nirmalya Dasgupta, Adv. Mr. Jitendra Patnaik, Adv. For decree-holder Mr. Ananda Basu, Adv. For judgement-debtor THE COURT: Learned Counsel for the judgment-debtor has submitted that 90% of the outstanding obligations have been discharged from the side of the judgment-debtor. Only 10% of the outstanding obligations are to be carried out from the side of the judgment-debtor, and the same shall be done within a very short time. Learned Counsel for the decree-holder has disputed the above statement. However, learned Counsel for the judgment-debtor seeks for an accommodation for filing a detailed affidavit showing that the tax responsibility of the transaction relating to the property at Park Street will be of the judgment-debtor. List the matter on January 22, 2024." "BEFORE: The Hon'ble JUSTICE APURBA SINHA RAY Date : 22nd JANUARY, 2024. Ms. Pooja Saha with Mr. Mahiul Islam, Advs. For the Judgment Debtor Mr. Nirmalya Dasgupta with Mr. Jitendra Patnaik, Advs. for the Decree Holder THE COUR....
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....uld be beyond the decree passed by the learned Trial Court. Learned counsel for the decree-holder has submitted that his client will be instructed to file an appropriate application before this Court. List this matter on 2nd April, 2024." 16. The learned counsel of the decree holder argues that as the learned counsel of the judgement debtors has undertaken to file an affidavit stating that his clients would take the tax responsibility of the transaction in connection of sale of the park street property, the respondents/judgement debtors are bound to file such affidavit accepting the tax responsibility of the said transaction. The learned counsel has also pointed out that as by order dated 28th February 2024 this court directed the judgement debtors to submit an affidavit as per earlier orders and also to hand over shares and transfer deeds to the decree holder, such order is binding upon the respondents/ judgement debtors since no appeal has been preferred against such order of the court and further the judgement debtors can neither change their stand nor deny to file any affidavit undertaking the tax responsibility of the said transaction. In this regard, he h....
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....operty having an office space admeasuring approximately 1314 sq.ft. of 113 Park Street is transferred/allotted to the judgement-debtor no. 2 Smt. Manju Agarwal with the condition that she shall be entitled to use, enjoy and deal with the said premises as owner thereof without any hindrance/objection from any of the parties including deed of partition. All expenses incurred in the above process shall be exclusively borne by Smt. Manju Agarwal. From the condition no. 10 it further appears that neither the plaintiff nor the other defendants shall claim any right, title and interest over the said property in any manner whatsoever and Smt. Manju Agarwal shall be entitled to use, enjoy and/or deal with the same as owner thereof and in the manner as she likes. The condition 7 of the consent decree stipulates that "All the defendants including the added defendant and the plaintiff shall execute all such documents that may be required including Deed of Partition and/or any other deed if required for transferring the said Park Street property in favour of Manju Agarwal." 20. Therefore, from the above conditions it is revealed that by virtue of the said consent decree the plaintiff, the de....
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....ct such undertaking and by allowing another advocate of the judgement-debtors to contradict their earlier stand is very much intriguing, particularly when the vakalatnama of the earlier advocate still exists in the record. It is also true that there is no affidavit from the side of the judgement-debtors that they did not give such instruction to their lawyer to inform the court that the concerned judgement debtor would bear the entire tax responsibility of the relevant transaction nor the vakalatnama of the advocate who undertook on behalf of the judgement debtors has been withdrawn or cancelled. The attitude of judgement debtors cannot be appreciated. 23.1. But, the important question which arises at this stage is whether an executing court can direct the person other than the vendor of a registered deed to shoulder the tax responsibility in connection with a transaction where sale value of the property is lesser than the value of the adopted or assessed by the Authority for the purpose of payment of stamp duty in respect of such transfer. In this case, as per consent decree the Nav Technology Pvt. Ltd. along with other defendants are to execute transfer deed in respect of the ....