(Nerka Chemicals v. Union of India

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

In the result, the appeal of the assessee is allowed

…to treat the said receipt as gift and accordingly had directly credited the same to „reserves and surplus‟ in the balance sheet. 5.3. We also find that the Hon‟ble Jurisdictional High Court in the case of Nerka Chemicals (P) Ltd vs Union of India reported in 371 ITR 280 (Bom) , which has been vehemently relied by the ld AR at the time of hearing, had observed as under:- FACTS ■ The assessee was a wholly owned subsidiary of DHPL and all the shares of DHPL were held by Shroff group. ■ For purpose of restructuring the group organization, certain equity shares in companies UPL and UEL transferred to assessee by Shro…

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 assessee and the donor companies are authorized in this regard for receiving and making gifts respectively by their Memorandum and Articles of association. 40. The Hon’ble jurisctional High Court in assessee’s own case (Nerka Chemicals Vs Union of India 371 ITR 280) while hearing the writ petition against the refusal of stay of recovery held that the assessee has more than just a strong prima facie case in this regard. The title given to a document is not determinative of its true character. The purport of the document must be ascertained on a consideration of the contents thereof. The respondents do not de…

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

…in CIT Vs Bisleri Sales Ltd [377 ITR 144(Bom)]and in ITO Vs Bhagwan Industries ltd (ITA No. 6665/M/2008). the decision of Parimisetti Seetharamamma vs CIT(57 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 dev…

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

…s „gift‟ of the shares to NCPL does not involve any consideration by the donee assessee-company. Considering the precedent involving in similar donor concern, which was adjudicated by the Hon‟ble Jurisdictional High Court in the case of Nerka Chemicals P Ltd (371 ITR 280) as well as Ahmedabad High Court judgment in the case of M/s. Prakriya Pharmachem vs. ITO in Special Civil Application No.20492 of 2015, dated 18.1.2016, we have adjudicated the identical issue in the said cases of Ultima Search and Shroffs (supra) and the said gift transactions are held by us as „gift‟ transactions. The decision is in favour of…

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) ..

…donor is an individual and donee is the company and transfer of shares constitutes a valid gift and said transfer is an exempt transfer u/s 47(iii) of the Act. Further, referring to judgment of Honble High court of Bombay in the case of Nerka Chemicals P Ltd 371 ITR 280, Ld Counsel mentioned that it is the case of the donee and it is prima facie finding on the said transfer transactions that title of the transfer agreement is not determinative of its true character. The Honble High Court also appreciated the fact of absence of consideration in the said transaction of transfer of shares by the assessee to NCPL. H…

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)

…0492 of 2015, dated 18.1.2016 and the related transfer of shares constitutes an exempt transfer under the provisions of sectin 47(iii) of the Act. We have also perused the order of Honble Bombay High Court in the case of the recipient company NECL reported in 371 ITR 280 during the Stay Petition related proceedings and find that the assessee‟s claim of gift agreement is prima facie approved. The relevant para 5 and 6 of the said judgment is extracted as under: “5. The AO in the assessment order held that the transfer agreement is purely in the nature of “transfer” as it does not mention the word „gift‟. He reject…