TaxTMI 
TaxTMI 
2025 (2) TMI 186
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....ed 2017-18 31.01.2018 Rs. 2,64,46,250/- 2018-19 31.08.2018 Rs. 18,58,49,430/- 2019-20 31.08.2019 Rs. 68,13,970/- 3. The assessee has entered into a Business Association Agreement (BAA) dated 14.05.2006 with Mr. Niranjan Hiranandani along with Mr. Darshan Hiranandani. The BAA laid down that the parties intent to jointly enter the business of construction, development in the Indian Real Estate Market and set out the structure through which such opportunities could be pursued. Dispute arose between the parties on the terms of BAA and arbitration proceedings were initiated by the assessee against the other two parties to the BAA for breach of relevant clauses of the BAA in February 2010 and the arbitral tribunal in its final award of May 2016 quantified the assessee's economic loss and awarded principal damage and pre-award interest. Aggrieved by the said award Mr. Niranjan Hiranandani and Mr. Darshan Hiranandani, contested the said order before the Hon'ble Bombay High Court. The Hon'ble Bombay High Court vide its interim order dated 14.10.2015 granted interim stay of the award with a direction to deposit a sum of Rs. 370,00,00,000/- with a lib....
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.... AY 2018-19 Actual interest on FD created with Central Bank of India (1 April 2018 to 18 March 2019) 18,58,30,161 Income from other sources AY 2019-20 5. Aggrieved the assessee filed further appeal before the CIT(A). The CIT(A) held that the principal damages plus pre-award interest of Rs. 4,40,56,45,664 as capital receipt not chargeable to tax. The CIT(A) further held that the entire interest totalling to Rs. 50,24,13,109 earned by the assessee as tabulated above as taxable in the AY 2019-20 and not as per the additions made by the AO across three AYs i.e. AY 2017-18, 2018-19 and 2019-20. Both the assessee and the revenue are in appeal before the Tribunal against the order of the CIT(A) contending the following issues - i. The appeal filed by the revenue for AY 2017-18 pertains to interest income added by the AO to the tune of Rs. 2,61,67,896/- which the CIT(A) has held as taxable in the year 2019-20. ii. The revenue's appeal for AY 2018-19 pertains to the FD interest of Rs. 18,47,51,359/- added by the AO as income which the CIT(A) has held to be the income of AY 2019-20. iii. The appeal by the revenue for AY 2019-20 is with regard to ....
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....s extracted below - 8. From the combined perusal of the above forms it is clear that the assessee has paid the tax on the principal and pre-award interest of Rs. 440,56,45,664/- amounting to Rs. 79,03,72,831/- as well as the tax on the total interest of Rs. 50,24,13,109/- amounting to Rs. 18,02,65,824/-. Therefore based on the submissions of the ld AR and considering the above facts the appeal filed by the assessee for AY 2019-20 contending the interest addition of Rs. 50,24,13,109/- is dismissed as withdrawn. Further the appeal filed by the revenue contending the deletion of addition made towards principal and pre-award interest of Rs. 440,56,45,664/- is also dismissed in view of the fact that the impugned amount is declared by the assessee under DTVSV and that the assessee has paid the tax on the same. 9. The revenue preferred appeals for AY 2017-18 and 2018-19 contending the decision of the CIT(A) that the interest amount of Rs. 2,61,67,896/- and Rs. 18,47,51,359/- added by the AO in these AYs respectively as taxable in the year 2019-20. The ld AR in this regard submitted that the said amounts are part of the total interest of Rs. 50,24,13,109/- declared under DTVSV and th....
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....rm 2 29 DIN/Acknowledgement Number:752593631131224 FORM-2 (See rule 5) CERTIFICATE UNDER SUB-SECTION (1) OF SECTION 92 OF THE FINANCE (NO. 2) ACT, 2024 (UNDER THE DIRECT TAX VIVAD SE VISHWAS SCHEME, 2024) Whereas Mr./Mrs/M/S PRIYA HIRANANDANI (hereinafter referred to as the declarant) having PAN/TAN AAAPH2877A has filed a declaration under section 91 of the Finance (No.2) Act, 2024(15 of 2024) in Form 1 vide acknowledgment number 722737330221124 dated 22-Nov-2024, Now, therefore, in exercise of the powers conterred by sub section (1) of section 92 of the Act and after consideration of relevant material, the following amounts are hereby determined to be payable by the declarant towards full and final settlement of the tax-arrear covered by the said declaration under the Act Assessment YOUT Financial year to be furnished only if TAN based appeal) Details of thespite settled Appeal Ruference Number Date of filing Appeal (32 (2) 1 2019-20 2 2019 Note (3) Nature of tax- Tax arreur (Rs) arrear (disputed tax / disputed penalty/disputed interest/disputed fee) Amount....