ACIT, CIRCLE-46(1), NEW DELHI vs. DABUR INVEST CORP , DELHI

ITA 2453/DEL/2022Status: DisposedITAT Delhi04 June 2025AY 2017-1841 pages
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What did the Tribunal hold?

The Tribunal held that the option price received by the assessee is a capital receipt. It is to be adjusted at the time of transfer of shares for calculating capital gains, and not taxable as revenue in the year of receipt.

What were the facts?

The assessee received an 'option price' as per a joint venture agreement for shares in a company. The Revenue sought to tax this as revenue receipt, while the assessee contended it was a capital receipt to be adjusted against capital gains upon share transfer.

What were the issues?

Whether the option price received by the assessee is a capital receipt or a revenue receipt, and if it is a capital receipt, how it should be adjusted upon the transfer of shares.

Which sections of the Income-tax Act were involved?

Section 147,Section 263

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Cases cited in this judgment(4)Show list

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Heard together (4 matters)

ITA No. 2453/Del/2022
ITA No. 2454/Del/2022
ITA No. 2447/Del/2022
ITA No. 2448/Del/2022

Read from the judgment's own cause title. This page is filed under one of them.

ITA Nos.2453, 2454, 2447 & 2448/DEL/2022

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER निर्धारणवर्ष/Assessment Year: 2017-18 ACIT, Circle-46(1), Room No.106, Drum Shape Building, I.P. Estate, New Delhi. बनाम Vs. अपीलार्थी Appellant Dabur Invest Corp., 4th Floor, Punjab Bhawan, New Delhi. PAN No.AADFD2529D प्रत्यर्थी/Respondent निर्धारणवर्ष/Assessment Year: 2018-19 ACIT, Circle-46(1), Room No.106, Drum Shape Building, I.P. Estate, New Delhi. बनाम Vs. Dabur Invest Corp., 4th Floor, Punjab Bhawan, New Delhi. अपीलार्थी Appellant PAN No.AADFD2529D निर्धारणवर्ष/Assessment Year: 2017-18 Dabur Invest Corp., 4th Floor, Punjab Bhawan, New Delhi. PAN No.AADFD2529D निर्धारणवर्ष/Assessment Year: 2018-19 Dabur Invest Corp., 4th Floor, Punjab Bhawan, New Delhi. PAN No.AADFD2529D

Assessee by Revenue by बनाम Vs. अपीलार्थी Appellant JCIT, Range-46, New Delhi. प्रत्यर्थी/Respondent Shri M.P. Rastogi, Adv. Shri Shivam Malik, Adv. & Shri Ajay Marwah, CA Ms. Monika Dhami, CIT DR

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