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TMI Blog2024 (7) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... oad, we had reserved liberty to it to approach the Court in case the need so arise. Both learned senior counsels, submit that since more than two years have elapsed and the search assessment is yet to be completed, there exists no justification for the continuation of that condition. As submitted by learned senior counsels that repatriation of royalty is a contractual obligation and in the absence of any crystallized demand, the conditions as imposed by Clause 7 (iv) are liable to be lifted. The facts and circumstances warrant the applicant being permitted to repatriate Rs. 97 crores which represents the royalty subject to deduction of tax. The applicant is thus permitted to repatriate moneys payable towards royalty less TDS in the interim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sain, SC with Mr. Sanjeev Menon, Adv. ORDER CM APPL. 46949/2023 1. This application has been moved for modification of Clause 7(iv) of our order dated 30 August 2022 and which restrains the applicant from repatriating royalty or dividend abroad during the pendency of the search assessment proceedings. 2. The genesis of the dispute and the facts which constrained the petitioner to approach this Court were succinctly noticed in our orders of 21 April 2022 and 30 August 2022. While disposing of the writ petition by our order of 30 August 2022, we had, apart from the stipulation referred to above, framed the following directions:- 7. Having heard the learned senior counsel for the Petitioner and the senior standing counsel for the Revenue, in v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce with law. (iii) The Respondents are directed to complete the assessment as expeditiously as possible. The parties will be at liberty to apply to this Court to seek a variation of this order. (iv) The Petitioner shall not repatriate any royalty or dividend abroad. The Petitioner will be at liberty to approach this Court, in case the need so arises. (v) The Petitioner shall continue to file its monthly statement with the assessing officer of Payments Received as well as Made . 3. Undisputedly, the respondents have failed to conclude the search assessments till date. It is also admitted before us that presently an amount of Rs. 230 crores approximately is held by the respondents This is a digitally signed order. pending finalization of thos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion again. We further direct the applicant to provide full and complete details in respect of the royalty repatriation which is proposed to be undertaken to the respondents. 7. This we so provide since substantial deposits have already been made by the applicant and a demand is yet to be formulated. We also take into consideration the fact that Clause 7(iv) was clearly intended to be a temporary measure liable to hold the field till such time as the search assessment is completed. We had at that time proceeded on the premise that the assessment would conclude shortly or at least within a reasonable period of time. However, almost two years have passed since then. The assessee, thus, cannot be compelled to default on its contractual obligati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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