India Vs. Azadi Bachao Andolan 263 ITR 706 (SC); and Vodafone International Holdings B.V v. Union of India

M/S. Aerens Developers and Engineers Ltd., New Delhi vs. ACIT, New Delhi

Appeals are allowed

Bench: Shri I.C. Sudhir & Shri J.S. Reddy Assessment Yea: 2007-08 Aerens Developers & Engineers Ltd., Vs. Acit, 6Th Floor, Mohindra Tower, Central Circel-8, 2A-Bhikaji Cama Place, New Delhi. New Delhi. (Pan: Aaaca2199R) (Appellant) (Respondent) Assessment Yea: 2007-08 Aerens R. Infra-Structure Ltd., Vs. Acit, 6Th Floor, Mohindra Tower, Central Circel-8, 2A-Bhikaji Cama Place, New Delhi. New Delhi. (Pan: Aaaca2199R) (Appellant) (Respondent) Assessee By: Shri P.C. Yadav, Adv. Department By: Shri R.K. Garg, Dr Date Of Hearing : 19.05.2016 Date Of Pronouncement: 12 :08.2016 Order Per I.C. Sudhir:The Assessees Have Questioned The First Appellate Order On The Following Common Grounds Of Appeals: The Order Of Learned Cit(Appeals) Is Bad In Law & On Facts. 1. On The Facts & In The Circumstances Of The Case, The Learned Cit(Appeals) Has Erred In Taxing The Compensation Of Rs. 1 Crore As Revenue Receipt Ignoring The Various Judicial Pronouncements & Submissions Of The Assessee. 2. On The Facts & In The Circumstances Of The Case, The Learned Cit(Appeals) Has Wrongly Rejected The Additional Evidence, I The Shape Of Fard Of Land & Resolution Of The Company, Produced By The As Per The Provision Of Rule 46A.

…t. e. It is settled position of law that under taxing provisions every step of a transaction would have to be seen carefully before reaching to any conclusion. A reference can be made to the decision of Hon’ble Apex Court in the case of Vodaphone reported in 341 ITR 1 (SC). f. Further assessee seeks to rely on the judgment of Hon’ble Pune Bench of the Tribunal in the case of Aquapharam in ITA No 372/Pune/2002 dated 29.02.2012. Copy of the decision is enclosed in Paper Book of decision and the relevant observation of the Hon’ble Bench are at Page No-15-,( Findings of the case starts from Page No13) wherein it ha…

E.I. Dupont India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

…the Learned AR that the Learned CIT(Appeals) was not justified in allowing some of the services and rejecting others which are being part of the same agreement. This view is fully supported by the decision of Hon'ble Supreme Court in the case of Voda Phone ( 341 ITR 1 ) holding that while ascertaining the legal nature of transaction, the Revenue/Court has to look at the entire transaction as a whole and not to adopt a dissecting approach. 24. We also find substance in the grievance of the assessee against the action of the authorities below in allowing the proportionate charge of services received for CPP and OC…

Commissioner of Income Tax vs. M/S Salora International Ltd

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…certificates of the shares allotted were sent by the said MTAIC in January this year, and it is hoped that all of you have received your respective entitled share certificates.” 26. In Vodafone International Holdings B.V. v. Union of India: [2012] 341 ITR 1 (SC), the Supreme Court held – albeit in a different context – that a transaction must be viewed holistically in its proper context. In that case the court applied the “look at” principle to consider whether the transaction in question was a device to evade taxes. Although the subject matter of the controversy in that case was different, the fol…

Commr.of Income Tax Delhi I vs. M/S Abhinandan Invest.Ltd

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…9. The decision of the Constitution Bench of the Supreme Court in Mcdowell (supra) has been explained by the Supreme Court in its later decisions. In one of the more recent decisions, Vodafone International Holdings B.V. v. Union of India and Anr.: (2012) 341 ITR 1 (SC), the Supreme Court held that the opinion of Justice Chinnappa Reddy must be read in conjunction with the observation of Justice Ranganath Misra (i.e. the majority opinion). In Union of India v Azadi Bachao Andolan: (2003) 263 ITR 706 (SC), the Supreme Court held that the above view of Justice Chinnappa Reddy was a far cry from the majorit…

CIT vs. M/S Teletube Electronics Ltd

The appeal of the Assessee is allowed

…e 16 of 32 the consideration of the transfer, i.e. Rs.20.729 crore, it was evident that the intention was to sell the plant and machinery to the lessee. Mr. Singh referred to the decisions in Vodafone International Holdings BV v. Union of India (2012) 341 ITR 1 and CIT v. Shivraj Gupta(2015) 372 ITR 337 (Del.). Submissions of counsel for the Assessee 26. In reply Mr. Vohra submitted that it was not possible to dissect the lease agreement and hold that while the giving on lease the plant and machinery was valid, the lease of the land and building was a sham transaction. It is inconceivable that the…

Teletube Electronics Ltd

The appeal of the Assessee is allowed

…e 16 of 32 the consideration of the transfer, i.e. Rs.20.729 crore, it was evident that the intention was to sell the plant and machinery to the lessee. Mr. Singh referred to the decisions in Vodafone International Holdings BV v. Union of India (2012) 341 ITR 1 and CIT v. Shivraj Gupta(2015) 372 ITR 337 (Del.). Submissions of counsel for the Assessee 26. In reply Mr. Vohra submitted that it was not possible to dissect the lease agreement and hold that while the giving on lease the plant and machinery was valid, the lease of the land and building was a sham transaction. It is inconceivable that the…

Teletube Electronics Ltd

The appeal of the Assessee is allowed

…e 16 of 32 the consideration of the transfer, i.e. Rs.20.729 crore, it was evident that the intention was to sell the plant and machinery to the lessee. Mr. Singh referred to the decisions in Vodafone International Holdings BV v. Union of India (2012) 341 ITR 1 and CIT v. Shivraj Gupta(2015) 372 ITR 337 (Del.). Submissions of counsel for the Assessee 26. In reply Mr. Vohra submitted that it was not possible to dissect the lease agreement and hold that while the giving on lease the plant and machinery was valid, the lease of the land and building was a sham transaction. It is inconceivable that the…