9911796707
TMI Blog2014 (11) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. 297/Mum/2014 M/s.KGE Loan Trust ₹ 41,57,344/- 2. 302/Mum/2014 M/s.Long Bond Receivable Trust 2007 Series V ₹ 3,31,80,524/- 3. 303/Mum/2014 M/s.KJS Loan Trust ₹ 63,08,840/- 2. At the outset it was pointed out by Ld. AR that under identical facts and circumstances of the case Tribunal in the cases of other assessees has granted stay initially vide order dated 24/5/2013 in S.A. Nos. 158/Mum/2013 to 162/Mum/13 and subsequently similar order was followed by the Tribunal vide its order dated 28/6/2013 in S.A. Nos. 167/Mum/2013 to 172/Mum/2013, copy of both the orders were placed before us. Ld. Sr. Counsel submitted that subsequently also stay was granted on the basis of aforementioned orders in various other cases and copies of all these decisions have been filed in the paper book as under: S. No. Particulars Page Nos. Certified copies of : 1. ITAT Stay order dated 6th Sept., 2013 in S.A. No.221/M/2013 34-36 2. ITAT Stay Order dated 21st March 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the trust was settled, the multiple beneficiaries i.e., various mutual fund contributed to the trust by subscribing to the Pass Through Certificates (PTC) in various series. The beneficiaries mutual fund subscribes to the PTC by which these beneficiaries are entitled for a proportionate interest in the receivables which comprised of principle and interest from HPCL. The regulatory frame work in which securitisation transaction can be carried out is prescribed by Reserve Bank of Indi, Security Exchange Board of India, as per their guidelines and regulation and also in view of the Securities Contracts (Regulations) Act, 1956. An order of assessment was passed by the Assessing Officer in respect of the trust by treating the trust as Association Of Persons (AOPs). This, inter alia, means that all the mutual fund beneficiaries were treated as AOPs. He has invoked the provisions of section 161(1A) and has computed the total income of ₹ 21,49,72,486, chargeable to tax at the maximum margin rate. The learned Commissioner (Appeals) partly allowed the assessee s appeal after enhancing the income of interest receivable of the month of March. The learned Commissioner (Appeals) has confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r taxation. Lastly, he submitted that the assessee s case is not covered by section 161(1A) but covered under section 161(1) and, therefore, both the authorities have erred in law. In all these issues, he submitted that the learned Commissioner (Appeals) s finding is prima facie erroneous. Thus, the assessee has a very strong and prima facie case in its favour from all counts and, therefore, the stay should be granted and the hearing of the appeals on merit be taken up at an early date. 4. The learned Departmental Representative, on the other hand, submitted that the learned Commissioner (Appeals) has considered all these submissions / objections of the assessee in a very elaborate manner and, therefore, it cannot be held that the assessee has a prima facie case for grant of stay. Alternatively, the assessee should be asked to pay some demand. 5. In the rejoinder, the learned Sr. Counsel submitted that the trust is only for the securitisation of the loan and once the loan is liquidated the trust is dissolved and only the beneficiaries are left. The tax cannot be collected from them as ultimately the income will belong to the beneficiaries only which are exempt by virtue of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grant of stay of the demand and there are various issues which warrant adjudication and in such a situation, stay should be granted. We find that the observations of the Hon'ble Jurisdictional High Court as given in case of UTI Mutual Fund in W.P. 523 of 2013, vide judgment dated 6th March 2013, and also in the similar W.P., vide judgment dated 14th March 2012, are still applicable and relevant in case of the assessee even after passing of the learned Commissioner (Appeals) s order. Therefore, in the interest of justice, we are of the considered opinion that this is a fit case for grant of stay. Consequently, we order as under: iv) The entire outstanding demand for the impugned assessment year is hereby stayed for a period of six months or passing of the order by the Tribunal in appeals, whichever is earlier; v) The Registry is directed to fix the appeal on out-of-turn basis on 26th June 2013, for hearing of appeals on merit; and The assessee shall not, except under exceptional and bona fide circumstances, seek adjournment. In view of the above order of the Co-ordinate Bench of the Tribunal and considering the facts that similar issues are involved in the appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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