9911796707
TMI Blog2025 (2) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has filed Form 1 for these two AYs and Form-2 has not yet been issued. Accordingly the ld DR submitted that the appeals cannot become infructuous since Form-1 filed by the assessee is pending disposal. AR to counter the said arguments submitted that the time line for determining the tax payable by the authorities has expired as per section 92(1) of DTVSV and therefore the Form-1 filed is automatically become not accepted. Undisputed fact that the interest additions made by the AO in AYs 2017-18 and 2018-19 are already included in the interest amount declared under Form 1 for AY 2019-20 and that the assessee has also paid the tax on the said amount as evidenced by the Form-2 as extracted in the earlier part of this order. Further t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offer the above tabulated amount to tax for the reason that the amount received are in the nature of capital receipts not chargeable to tax. The AO made additions as tabulated below while completing the assessments for AY 2017-18, 2018-19 and 2019-20: Nature of income Amount - Rs. Taxable under the head Year of taxability Principal damages plus pre-award interest 4,40,56,45,664 Profits and gains from business and profession AY 2019-20 Pre-High Court Order Interest 17 August 2016 to 17 November 2016 6,46,00,000 Income from other sources AY 2019-20 Interest on amount lying with Prothonotary (17 November 2016 to 18 March 2019) 4,10,63,693 Income from other sources AY 2019-20 Actual interest on FD created with Central Bank of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal receipt not taxable in the hands of the assessee. iv. The assessee's appeal for AY 2019-20 is towards the total interest of Rs. 50,24,13,109/- which is added as income is not taxable since the interest bears the same character as that of the principal damages which is held as capital receipt not taxable. 6. At the outset the ld. AR submitted that the assessee has filed the relevant forms under Direct Tax Vivad se Viswas Scheme, 2024 (DTVSV) for all the years under consideration i.e. AY 2017-18, 2018-19 and 2019-20. The ld. AR further submitted that while submitting Form-1 for AY 2019-20 the assessee has considered the amount of principal and pre-award interest of Rs. 440,56,45,664/- and the entire interest of Rs. 50,24,13,109/- ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest of Rs. 50,24,13,109 is 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the provisions of this Scheme and grant a certificate to the declarant containing particulars of the tax arrear and the amount payable after such determination, in such form as may be prescribed. 11. In assessee's case, it is an undisputed fact that the interest additions made by the AO in AYs 2017-18 and 2018-19 are already included in the interest amount declared under Form 1 for AY 2019-20 and that the assessee has also paid the tax on the said amount as evidenced by the Form-2 as extracted in the earlier part of this order. Further the facts that Form-1 filed by the assessee for AYs 2017-18 & 2018-19 have not been processed by the designated authority within the time limit and that the tax on the amount declared is already paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
