TaxTMI 
TaxTMI 
2025 (1) TMI 1160
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....4-09-2021. The grounds taken by the assessee are as under: - 1. The order of the learned Principal Commissioner of Income Tax is contrary to law, facts and circumstances of the case. Jurisdiction 2.1 The learned Principal Commissioner of Income Tax erred in assuming jurisdiction/passing order under section 263 of the Income Tax Act, 1961 (the Act). 2.2 The learned Principal Commissioner of Income Tax ought to have appreciated that the Assessing Officer has passed the order after considering the detailed submissions submitted by the Appellant during the course of assessment proceedings. 2.3 The learned Principal Commissioner of Income Tax ought to have appreciated that the issue sought to be revis....
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....oned that the Assessee had complied and replied to the notices on 31/08/2021 in Page no. 4 of the assessment order. 2. The Ld. AR advanced arguments and submitted that the case was reopened specifically to examine the issue as raised in the revisionary order. The Ld. AR stated that the assessee furnished explanations which were accepted by Ld. AO and the same was, in fact, only possible view in the matter. The Ld. AR also raised the issue of double taxation. The written submissions have also been filed vide letter dated 25-10-2024 which have duly been considered while adjudicating the appeal. The Ld. CIT-DR, on the other hand, supported the revisionary order and referred to various case laws. Having heard rival submissions and upon perus....
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....return of income of debenture holders, it was noted that only some of the debenture holders offered accumulated and accrued interest. In assessee's' case, such accumulated interest amounted to Rs. 75.46 Lacs. However, the assessee offered interest income of Rs. 13.48 Lacs only and did not offer the remaining interest amount of Rs. 61.97 Lacs. Accordingly, the case was reopened and various notices were issued to the assessee. 3.3 The assessee submitted that equity shares were allotted in lieu of debentures along with amortization of discount on debentures which falls under the purview of Sec.47(x) and therefore, the same would not be regarded as transfer. The assessee also submitted that it followed cash system of accounting as per Sec. 1....
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....7(x) which provided that such conversion of debentures into equity would not be regarded as transfer. The issue of capital gain would be dealt with in the year of sale of equity shares. Reference was made to various judicial decisions to assail the revision of the order. 3.5 However, Ld. Pr. CIT observed that the issue of taxability of proportionate accumulated accrued interest on conversion of debentures into shares up-to the date of conversion was not properly examined by Ld. AO. The claim was accepted without having a holistic approach to the issue on hand. Pertinently, in reassessment proceedings of some other directors, elaborate discussions were made and appropriate additions were made. The Ld. AO ought to have examined the provisi....
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....ture and accumulated interest component of Rs. 1500/- per debentures. SMJPL deducted TDS on interest component in this year and claimed the same as deduction which was allowed in their assessment proceedings. 5. So far as the assessee is concerned, the interest that has accrued to the assessee on these debentures for various years up-to the date of redemption is as follows: - No. Period Amount of Interest (Rs.) 1. 02-09-2009 to 31-03-2010 14,27,637/- 2. 01-04-2010 to 31-03-2011 24,47,378/- 3. 01-04-2011 to 31-03-2012 24,47,378/- 4. 01-04-2012 to 30-09-2012 12,23,689/- Total 75,46,082/- From assessment order, it could be seen that the assessee has offered interest amount of R....