Leighton India Contractors Pvt. Ltd. v. The Union of India and ors - 2014-LL-1118-7

Citation	2014-LL-1118-7
Appellant Name	Leighton India Contractors Pvt. Ltd.
Respondent Name	The Union of India and ors.
Court	HIGH COURT OF BOMBAY
Relevant Act	Income-tax
Date of Order	18/11/2014
Assessment Year	2010-11
Judgment	View Judgment
Keyword Tags	associated enterprise • preference shares • draft assessment
Bot Summary:	H CORAM : M. S. SANKLECHA AND S.C. GUPTE, JJ. DATE : 18 NOVEMBER, 2014 PC: H The issue arising in the present petition relating to A.Y.2010-11 is whether the issue of equity shares by the petitioner to its non resident y Associated Enterprises and the conversion of its preference shares held by the non resident Associated Enterprises into equity shares would attract the ba provisions of Chapter X of the Income Tax Act, 1961. 2) It is agreed between the Counsel that the above issue stands om covered in favour of the petitioner by virtue of the decision of this Court in Vodafone India Services Pvt. ltd. By the impugned orders it has been held that there is a short fall in the amounts ::: Uploaded on - 25/11/2014 ::: Downloaded on - 03/05/2016 19:08:49 ::: ASN 2/2 WP-732 received on issue of equity shares and conversion of Preference shares into equity shares when benchmarked against the Arms Length Price to be rt received on issue and conversion. 4) We are informed that the petitioner has also filed objection to C the draft assessment order before the Dispute Resolution Panel and we are also informed that the hearing of the petitioner's objection is scheduled before the DRP on 24 November 2014. The petitioner is not h withdrawing its application before the DRP as there are other issues being urged before it. Ig 5) In the above view, we see no reason to entertain this petition. It goes without saying that the DRP will decide the petitioner's objection in the light of agreed position between the parties in the present facts to the effect that no income would arise in respect of issue of equity y shares to non residential share holder and the conversion of preference ba shares into equity shares held by the non resident Associated Enterprise in view of Vodafone -IV. om 6) Petition is disposed of with the above directions.

IN HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION rt WRIT PETITION NO.732 OF 2014 ou Leighton India Contractors Pvt. Ltd. ...Petitioner. vs. Union of India and ors. ...Respondents. C Mr. Percy Pardiwala, Senior Counsel along with Ms. Megha Bansal and Mr. J.S.Sanghavi i/by PDS Legal for Petitioner. Mr. Tejveer Singh for Respondents. h CORAM : M. S. SANKLECHA AND S.C. GUPTE, JJ. DATE : 18 NOVEMBER, 2014 PC: H issue arising in present petition relating to A.Y.2010-11 is whether issue of equity shares by petitioner to its non resident y Associated Enterprises and conversion of its preference shares held by non resident Associated Enterprises into equity shares would attract ba provisions of Chapter X of Income Tax Act, 1961. ( Act ). 2) It is agreed between Counsel that above issue stands om covered in favour of petitioner by virtue of decision of this Court in Vodafone India Services Pvt. ltd. vs. Union of India 368 ITR Page 1 (Vodafone IV). B 3) This petition challenges order dated 27 January 2014 of Transfer Pricing Officer passed under Section 92CA(3) of Act and also Draft Assessment Order (served upon petitioner on 2 April 2014). By impugned orders it has been held that there is short fall in amounts ::: Uploaded on - 25/11/2014 ::: Downloaded on - 03/05/2016 19:08:49 ::: ASN 2/2 WP-732 received on issue of equity shares and conversion of Preference shares into equity shares when benchmarked against Arms Length Price (ALP) to be rt received on issue and conversion. This short fall is characterized as income arising from International Transactions and is being subjected to tax for ou Assessment Year 2010-11. 4) We are informed that petitioner has also filed objection to C draft assessment order before Dispute Resolution Panel (DRP) and we are also informed that hearing of petitioner's objection is scheduled before DRP on 24 November 2014. petitioner is not h withdrawing its application before DRP as there are other issues being urged before it. ig 5) In above view, we see no reason to entertain this petition. H However, it goes without saying that DRP will decide petitioner's objection in light of agreed position between parties in present facts to effect that no income would arise in respect of issue of equity y shares to non residential share holder and conversion of preference ba shares into equity shares held by non resident Associated Enterprise in view of Vodafone -IV. om 6) Petition is disposed of with above directions. No order as to costs. B (S.C. GUPTE, J.) (M.S. SANKLECHA, J.) ::: Uploaded on - 25/11/2014 ::: Downloaded on - 03/05/2016 19:08:49 ::: Leighton India Contractors Pvt. Ltd. v. Union of India and or

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