DP World (P.) Ltd. v. DCIT

Deputy Commissioner of Income Tax-14(2)(1), Mumbai vs. Idea Cellular Limited, Mumbai

In the result, appeal of the assessee is partly allowed and appeal of the Revenue is allowed for statistical purposes

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

…e can also give and accept gifts and the Ld. AO made an erroneous presumption that only natural persons can give and accept gifts out of natural love and affection. Reliance in this regard was placed by him on the decision of DP World (P.) Ltd. v. DCIT [2013] 140 ITD 694 (Mumbai) and the decision of Hon'ble Madras High Court in PCTT v Redington (India) Ltd [2021] 430 ITR 298 (Madras) affirming the Hon'ble Chennai Tribunal decision in [2014] 49 taxmann.com 146 (Chennai - Trib.) Thus, in law, if stand of Department that Assessee received undertaking worth Rs.2069 crores without consideration is accepted, it would b…

Idea Cellular Limited, Mumbai vs. Deputy Commissioner of Income Tax-3(2), Mumbai

In the result, appeal of the assessee is partly allowed and appeal of the Revenue is allowed for statistical purposes

Bench: IN THE INCOME TAX APPELLATE TRIBUNAL, ‘I’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

…e can also give and accept gifts and the Ld. AO made an erroneous presumption that only natural persons can give and accept gifts out of natural love and affection. Reliance in this regard was placed by him on the decision of DP World (P.) Ltd. v. DCIT [2013] 140 ITD 694 (Mumbai) and the decision of Hon'ble Madras High Court in PCTT v Redington (India) Ltd [2021] 430 ITR 298 (Madras) affirming the Hon'ble Chennai Tribunal decision in [2014] 49 taxmann.com 146 (Chennai - Trib.) Thus, in law, if stand of Department that Assessee received undertaking worth Rs.2069 crores without consideration is accepted, it would b…

25Fps Media Pvt. Ltd., Mumbai vs. ITO, Range -6(3)(1), Mumbai

In the result, the appeal filed by the assessee is hereby allowed and the appeal filed by the revenue is hereby dismissed

Bench: Shri Amarjit Singh, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No. 2798/Mum/2018 (निर्धारण वर्ा / Assessment Year:2012-13) Ito, Range-6(3)(1) बिधम/ 25Fps Media Pvt. Ltd. Room No.524, 5Th Floor, 18Th Floor, Marathon Futurex, Vs. Aayakar Bhavan, Mumbai- N. M. Joshi Marg, Lower 400020. Parel, Mumbai-400013. & आयकर अपील सं/ I.T.A. No. 3085/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2012-13) बिधम/ 25Fps Media Pvt. Ltd. Ito, Range-6(3)(1) 18Th Floor, Marathon Futurex, Room No.524, 5Th Floor, Vs. N. M. Joshi Marg, Lower Aayakar Bhavan, Mumbai- Parel, Mumbai-400013. 400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacz2076J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Percy Pardiwala & Madhur Aggarwal Revenue By: Shri Achal Sharma (Dr) सुनवाई की तारीख / Date Of Hearing: 27/01/2022 घोषणा की तारीख /Date Of Pronouncement: 02/03/2022 आदेश / O R D E R Per Amarjit Singh (Jm): The Assessee As Well As Revenue Have Filed The Above Mentioned Appeals Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2012-13. Ita. No.2798/Mum/2018 2. The Revenue Has Filed The Present Appeal Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai Relevant To The A.Y.2012-13. 3085/M/2018 A.Y. 2012-13 3. The Revenue Has Raised The Following Grounds: -

…onsidered as colourable device and the principle laid down by the Supreme Court in the case of McDowell and Co. Ltd, is not applicable. The order of the Mumbai Bench of the Tribunal in the case of DP World (P.) Ltd. v. Dy. CIT [2012] 26 taxmann.com 163/[2013] 140 ITD 694 was relied upon to contend that the transaction of gift cannot be brought to tax. It was also submitted that in the absence of selling price, the capital gain cannot be calculated and, hence, computation machinery falls. It was further contended that the market value cannot be substituted for sale consideration as there is no such provision in th…

ITO 6(3)(1), Mumbai vs. 25 Fps Media Pvt. Ltd., Mumbai

In the result, the appeal filed by the assessee is hereby allowed and the appeal filed by the revenue is hereby dismissed

Bench: Shri Amarjit Singh, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No. 2798/Mum/2018 (निर्धारण वर्ा / Assessment Year:2012-13) Ito, Range-6(3)(1) बिधम/ 25Fps Media Pvt. Ltd. Room No.524, 5Th Floor, 18Th Floor, Marathon Futurex, Vs. Aayakar Bhavan, Mumbai- N. M. Joshi Marg, Lower 400020. Parel, Mumbai-400013. & आयकर अपील सं/ I.T.A. No. 3085/Mum/2018 (निर्धारण वर्ा / Assessment Year: 2012-13) बिधम/ 25Fps Media Pvt. Ltd. Ito, Range-6(3)(1) 18Th Floor, Marathon Futurex, Room No.524, 5Th Floor, Vs. N. M. Joshi Marg, Lower Aayakar Bhavan, Mumbai- Parel, Mumbai-400013. 400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacz2076J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Percy Pardiwala & Madhur Aggarwal Revenue By: Shri Achal Sharma (Dr) सुनवाई की तारीख / Date Of Hearing: 27/01/2022 घोषणा की तारीख /Date Of Pronouncement: 02/03/2022 आदेश / O R D E R Per Amarjit Singh (Jm): The Assessee As Well As Revenue Have Filed The Above Mentioned Appeals Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y. 2012-13. Ita. No.2798/Mum/2018 2. The Revenue Has Filed The Present Appeal Against The Order Dated 28.02.2018 Passed By The Commissioner Of Income Tax (Appeals) -12, Mumbai Relevant To The A.Y.2012-13. 3085/M/2018 A.Y. 2012-13 3. The Revenue Has Raised The Following Grounds: -

…onsidered as colourable device and the principle laid down by the Supreme Court in the case of McDowell and Co. Ltd, is not applicable. The order of the Mumbai Bench of the Tribunal in the case of DP World (P.) Ltd. v. Dy. CIT [2012] 26 taxmann.com 163/[2013] 140 ITD 694 was relied upon to contend that the transaction of gift cannot be brought to tax. It was also submitted that in the absence of selling price, the capital gain cannot be calculated and, hence, computation machinery falls. It was further contended that the market value cannot be substituted for sale consideration as there is no such provision in th…

Humuza Consultants, Mumbai vs. The Pr. CIT-19, Mumbai

In the result, appeal filed by the assessee is allowed and the stay application filed by the assessee is dismissed

Bench: Shri Prashant Maharishi () & Shri Pavan Kumar Gadale () Humuza Consultants Vs The Principal Commissioner Of 6Th Floor, Wokhardt Towers Income-Tax-19, Mumbai Bandra Kurla Complex Room No. 228, 2Nd Floor, Bandra East Matru Mandir Mumbai-400 01 Tardeo Road, Pan : Aahfh9240E Mumbai-400 007 Appellant Respondent Appellant By Shri Jd Mistry & Hiten Chande Respondent By Shri K.K. Mishra (Cit,Dr) Date Of Hearing 07-12-2021 Date Of Pronouncement 07-01-2022 O R D E R Per Prashant Maharishi (Am):

…of the Act. He, therefore, submitted that the provisions are not clarificatory and retrospective in nature. 14. The ld AR further relied on several judicial precedents. a. He first referred to the decision of the co-ordinate bench in DP World Pvt Ltd vs DCIT [140 ITD 694]. Referring to para 13 of that order wherein it has been held that the Transfer of Property Act does not restrict the transfer of shares by way of gift by the company. It is also held therein that company is permitted to transfer in terms of section 82 of the Companies‘ Act, 1956 where the shares constitute a movable property and can be transferr…

Crescent Payments P.Ltd, Mumbai vs. DCIT Cir 6(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

…re are other two factors of crucial importance, one legal and the other practical, to grant the stay albeit on certain conditions. [Para 11] ■ The the assessee case is supported by an order of the Tribunal in the case of D.P. World (P.) Ltd. v. Dy. CIT [2013] 140 ITD 694/[2012] 26 taxmann.com 163 (Mum. - Trib.). The transaction involved a transfer of the shares which entitled the holder of the shares to the said flats. The Tribunal had held that simply because both the donor and the donee happened to belong to the same group cannot ipso facto establish that they have any business dealings and it is a case of a va…

Direct Media Distribution Ventures Pvt. Ltd., Mumbai vs. Pr.CIT - Range -6, Mumbai

In the result, the appeal of the assessee is allowed

Bench: Shri M.Balaganesh, Am & Shri Ram Lal Negi, Jm M/S. Direct Media Vs. Pr. Commissioner Of Distribution Ventures Pvt. Income Tax, Range-6 Ltd., Mumbai 18Th Floor, A-Wing Marathon Futurex N.M.Joshi Marg, Lower Parel Mumbai – 400 013 Pan/Gir No.Aadcd1940Q (Appellant) .. (Respondent)

…not a taxable transfer as per provisions of Section 47(iii) of the Act. To support our contention, we would like to invite your kind attention to the Hon'ble Mumbai ITAT's decision in case of DP World (P) Ltd. vs. Deputy Commissioner of )' Income-tax - 2(1) [140 ITD 694 (2013)] wherein Mumbai ITAT has held that transfer of shares without monetary 14 M/s. Direct Media Distribution Ventures Pvt. Ltd. consideration is nothing but a gift and it is a capital receipt - not taxable under the provisions of Section 56(1) and Section 28(iv). Further, recently, the Chennai bench of the Income-tax Appellate Tribunal (the…

Cable Corporation of India Ltd, Mumbai vs. DCIT Circle 2(1), Mumbai

In the result, the appeal of the assessee is allowed

Bench: Shri Rajesh Kumar & Shri Amarjeet Singhassessment Year: 2010-11

…the Companies Act. Further as per section 5 of the Transfer of Property Act, a company is a living person, competent to transfer a property and therefore the Transfer of Property Act permits a company to be a transferor (donor). In DP World (P) Ltd vs. DCIT (140 ITD 694) (Mum) the coordinate bench of Tribunal while considering the taxability of the Gift held that when, the assessee received three residential flats by way of gift of shares of the concerned housing society from its sister concern and in absence of any specific provision taxing a gift as a deemed business income, provisions of section 28(iv) cannot…

Nerka Chemicals P. Ltd, Gujrat vs. Asst CIT Cen Cir 38, Mumbai

In the result this ground of appeal is allowed for statistical purpose

Bench: Shri R.C. Sharma, Accountant Mamber & Shri Pawan Singh

…ITR 532), decision of Hon’ble Bombay High Court in assessee’s own case i.e. Nerka Chemicals Pvt. Ltd. 371 ITR 280, Hon’ble Gujarat High Court in Prakriya Pharmacham (Spl.Civil Application No. 20492 of 2015), decision of Tribunal in DP World (P.) Ltd. Vs DCIT 140 ITD 694 (Mumbai), Rupee Finance Management (P) Ltd Vs ACIT (SOT 174) (Mum), DCIT Vs Manish Chedha (29 SOT 138). Against the contention of the revenue that Gift of UPL and UEL shares is colourable devise it was submitted that the aforesaid issue had come up for adjudication before the Tribunal in the case of the appeals filed by the donor entities. The Tr…

Dwarka Prasad Agarwal, Mumbai vs. ITO 21(1)(3), Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

…y M/S Valcon Investments Ltd could validly gift shares to the assessee and the ld CIT(A) grossly erred in affirming the order of AO on this issue. In support of his contention, the ld.AR relied upon on series of decisions : a) DP World (P ) Ltd V/s DCIT (Mum) 140 ITD 694; b) Redington (I) Ltd V/ JCIT (2014) 49 taxmann.com 146 (Chennai-Trib); c) DCIT V/s KDA Enterprises (P)Ltd (2015) 57 taxmann.com 284 (Mumb trib) 46 I . T . A . N o . 4 5 9 1 / M u m / 2 0 1 6 a n d o t h e r t w o a p p e a l s The ld. AR submitted that in view of the above decisions, the addition made by the AO on account of gift and confirmed…

Dwarka Prasad Agarwal, Mumbai vs. ITO 21(1)(3), Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

…y M/S Valcon Investments Ltd could validly gift shares to the assessee and the ld CIT(A) grossly erred in affirming the order of AO on this issue. In support of his contention, the ld.AR relied upon on series of decisions : a) DP World (P ) Ltd V/s DCIT (Mum) 140 ITD 694; b) Redington (I) Ltd V/ JCIT (2014) 49 taxmann.com 146 (Chennai-Trib); c) DCIT V/s KDA Enterprises (P)Ltd (2015) 57 taxmann.com 284 (Mumb trib) 46 I . T . A . N o . 4 5 9 1 / M u m / 2 0 1 6 a n d o t h e r t w o a p p e a l s The ld. AR submitted that in view of the above decisions, the addition made by the AO on account of gift and confirmed…

ACIT 21(2), Mumbai vs. Kiran Aggarwal, Mumbai

In the result, appeal of the Revenue is dismissed

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

…y M/S Valcon Investments Ltd could validly gift shares to the assessee and the ld CIT(A) grossly erred in affirming the order of AO on this issue. In support of his contention, the ld.AR relied upon on series of decisions : a) DP World (P ) Ltd V/s DCIT (Mum) 140 ITD 694; b) Redington (I) Ltd V/ JCIT (2014) 49 taxmann.com 146 (Chennai-Trib); c) DCIT V/s KDA Enterprises (P)Ltd (2015) 57 taxmann.com 284 (Mumb trib) 46 I . T . A . N o . 4 5 9 1 / M u m / 2 0 1 6 a n d o t h e r t w o a p p e a l s The ld. AR submitted that in view of the above decisions, the addition made by the AO on account of gift and confirmed…

Bloom Packaging P Ltd, Mumbai vs. Asst CIT Cen Cir 39, Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri D. Karunakara Rao & Shri Amit Shukla

…t the firms and the companies, we find the arguments and judgments relied by the Ld Counsel of the assessee are relevant and consequently, the conclusions of the CIT(A) are required to be dismissed. The decision of the Tribunal in the case of DP World (P) Ltd 140 ITD 694 and KDA Enterprises P Ltd 68 SOT 349 are relevant for the legal proposition that the gifts transferred by the Indian company to the foreign company constitutes a valid gift and the transfer is an exempt transfer u/s 47(iii) of the Act. Further, we accept the Counsel‟s proposition that share transfer by way of gift is allowable u/s 56(2)(viia) & 5…

Jaidev R. Shroff, Mumbai vs. DCIT CC- 6(3) Earstwhile ACIT - CC-38, Mumbai

In the result, appeal of the assessee is allowed

Bench: Shri D. Karunakara Rao & Shri Amit Shuklajaidev R. Shroff, फनाभ/ Acit, Central Circle-38, Cd Marg, Khar (W), (After Restructuring New Vs. Mumbai – 400 052. Jurisdiction Dcit, Cc 6(3)), Mumbai. स्थामी रेखा सं./ Pan : Aalps9283N (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) Rajnikant D. Shroff, फनाभ/ Acit, Central Circle-38, Uniphos House, 11Th Road, Mumbai. Vs. Cd Marg, Khar (W), Mumbai – 400 052. स्थामी रेखा सं./ Pan : Aalps9281Q (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) Vikram R. Shroff, फनाभ/ Acit, Central Circle-38, Cd Marg, Khar (W), (After Restructuring New Vs. Mumbai – 400 052. Jurisdiction Dcit, Cc 6(3)), Mumbai. स्थामी रेखा सं./ Pan : Aaops8597C (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent) फनाभ/ Sandra R. Shroff, Acit, Central Circle-38, Cd Marg, Khar (W), (After Restructuring New Vs. Mumbai – 400 052. Jurisdiction Dcit, Cc 6(3)), Mumbai. स्थामी रेखा सं./ Pan : Ahhps2731G (अऩीराथी /Appellant) (प्रत्मथी / Respondent) ..

…f the Act. For that proposition, he brought out attention to the proviso to section 47(iii) of the Act where the provisions refer to a company gifts. Further, he also relied heavily on the orders of the Tribunal in the case of DP World (P) Ltd vs. DCIT (2013) 140 ITD 694 (2014) and the decision in the case of DCIT vs. KDA Enterprises Pvt Ltd (2015) 39 ITR (Trib.) 657 (paras, 27, 31 and 39 of the said Tribunal‟s order are relevant) to support the view that the gifts are given by all the persons. Further, he submitted that in the present case, the donor is an individual and donee is the company and transfer of shar…

Ultima Search, Gujrat vs. Asst CIT Cen Cir 38, Mumbai

In the result, appeal of the assessee is allowed for statistical purposes

Bench: Shri D. Karunakara Rao & Shri Amit Shuklaultima Search, फनाभ/ Acit, Central Circle-38, 1/3, Gidc Estate, Vapi, (After Restructuring New Vs. Bulsar, Gujarat-396195. Jurisdiction Dcit, Cc 6(3)), Mumbai. स्थामी रेखा सं./ Pan : Aaafu7129A (अऩीराथी /Appellant) .. (प्रत्मथी / Respondent)

…that proposition, he brought out attention to the proviso to section 47(iii) of the Act where the provisions refer to a company gifts are specified. Further, he also relied heavily on the orders of the Tribunal in the case of DP World (P) Ltd vs. DCIT (2013) 140 ITD 694 (2014) and the decision in the case of DCIT vs. KDA Enterprises Pvt Ltd (2015) 39 ITR (Trib.) 657 (paras, 27, 31 and 39 of the said Tribunal‟s order are relevant) to support the view that the gifts are given by all the persons. 8. We have heard both the parties and perused the orders of the Revenue Authorities and the case laws cited before us.…

Credit Suisse Business Analystics (India) Private Limited, Mumbai vs. Asstt.CIT- 15(1)(2), Mumbai

…आयकर अपीलीय अिधकरण, मुंबई “ई” खंडपीठ Income-tax Appellate Tribunal -“E”Bench Mumbai सव"ी राजे"" राजे"",लेखा लेखा सद"य सद"य एवं एवं सी सी. एन एन. "साद "साद,"याियक "याियक सद"य सद"य सव"ी सव"ी सव"ी राजे"" राजे"" लेखा लेखा सद"य सद"य एवं एवं सी सी एन एन "साद "साद "याियक "याियक सद"य सद"य Before S/Shri Rajendra,Accountant Member and C.N. Prasad,Judicial Member वष" /Assessment Years: 2010-11 आयकर अपील अपील संसंसंसं./ITA/993/Mum/2015,िनधा" रण वष" आयकर िनधा"रण आयकर आयकर अपील अपील िनधा" िनधा" रण रण वष" वष" Credit Suisse Business Analysis (India) ACIT, Circle-15(1)(2) Aayakar Bhavan, 4th Floor, Room-403 Pvt. Ltd. Third and Fo…