Naraindas Essardas and Sons (HK) Limited vs. ACIT(IT)

Parties Involved

Facts Summary

The present appeal arises from the final assessment order passed by the ACIT, International Taxation, Circle-3(3)(1), Mumbai under Section 147 r.w. Section 144 dated 29th March, 2024 for A.Y. 2017-18. The assessee, a non-resident company based in Hong Kong, sold shares of IndusInd Bank Ltd. and claimed Long Term Capital Gains on the sale consideration to be exempt. The assessment was reopened based on information regarding remittance of money to a foreign company. The assessee did not file a return of income in India. The assessee claimed that the shares were held for more than a year and STT was paid. The assessee filed objections before the Dispute Resolution Panel, Bangalore, but did not receive notices sent by DRP. The Ld. AO passed the final assessment order by making addition in the hands of the assessee, amounting to Rs.45,30,24,683/- on the sale proceeds of the equity shares as Short Term Capital Gains under Section 111A of the Act.…

Legal Issues

• 1. Whether the sale proceeds of the equity shares should be treated as Long Term Capital Gains or Short Term Capital Gains.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Ladderup Finance Limited vs. Circle 14(1)(1), Mumbai

  Mumbai benchAY 2015-16Allowed

• Bharti Chirania vs. DCIT, Circle - 23(1)

  Mumbai bench

• Sri Hari Prasad Agarwal Vs ITO Ward-46(1), Kolkata

  SMC Bench, Kolkata benchAY 2015-2016Allowed

• Sandstone Investment Partners I Vs. Deputy Commissioner of Income Tax- (IT)

  Delhi Bench 'D', Delhi benchAY 2017-18Allowed

• iShares Core MSCI Emerging Markets ETF v. Deputy Commissioner of Income Tax

  Mumbai Bench benchAY 2022-23, 2023-24Partly Allowed

• Sterling Finvst Private ltd. Vs. DCIT, Circle-5(1)

  Kolkata benchAY 2014-15Allowed