ORBIS REAL ESTATE FUND I,HYDERABAD (AUTH. REP.) V. ADIT (INTERNATIONAL TAXATION)-2 - 2, HYDERABAD

SA 33/HYD/2024

AI Insights

The case involves Orbis Real Estate Fund-1, which filed a stay application against the recovery of an outstanding tax demand arising from Long-Term Capital Gains on the sale of shares in Watermarke Estates Private Limited. The assessee argued financial difficulties and insolvency, seeking protection of interests pending an appeal against the denial of indexation cost benefit while computing Long-Term Capital Gain. The Departmental Representative opposed the stay, noting the assessee's unwillingness to pay even the minimum 20% of the demand. The tribunal decided against the stay but granted an expedited hearing for the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 27305 (ITAT-HYDERABAD)
• Duration Of Justice: 17 day(s)
• Appeal Type: Others
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 29-11-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 12-11-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: SAI SOWRAB K
• Keywords: Double taxation relief; Application of stay; Residential status
• Section: 40(a)(ia)

Judgement Text

" SA No 33 of 2024 Orbis Real Estate Fund Page 1 of 3 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member S.A. No.33/Hyd/2024 आ.अपी.सं /ITA No.785/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2020-21) Orbis Real Estate Fund-1 Hyderabad PAN:AACCO9476B Vs. Asstt. Director of Income Tax (International Taxation)-2 (2) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: CA Sai Sowrab K राज̾ व Ȫारा/Revenue by:: Shri Waseem UR Rehman, DR सुनवाई की तारीख/Date of hearing: 29/11/2024 घोषणा की तारीख/Pronouncement: 29/11/2024 आदेश/ORDER Per Vijay Pal Rao, Vice President By way of this stay application, the assessee is seeking stay against the recovery of outstanding demand of tax arising from Long-Term Capital Gain assessed by the Assessing Officer on the transaction of sale of shares in the Watermarke Estates Private Limited. SA No 33 of 2024 Orbis Real Estate Fund Page 2 of 3 2. At the time of hearing, the learned AR of the assessee has submitted that the assessee company is facing financial difficulties and at the verge of insolvency and therefore, not able to pay the outstanding demand of tax. He has further submitted that the assessee has filed the appeal against the impugned order of the learned CIT (A) and main issue in the appeal of the assessee is regarding denial of benefit of indexation cost while computing the Long-Term Capital Gain. Thus, the learned AR has submitted that if the appeal of the assessee is heard as out of turn, then the assessee’s interest be protected. 3. On the other hand, the learned DR has objected to the stay of recovery of the outstanding demand of tax as the assessee is even not ready to pay the minimum amount of 20% of the outstanding demand. 4. Having considered the rival submissions as well as the relevant material on record, at the outset we note that the assessee has raised various grounds and issues in the appeal filed against the impugned order of the learned CIT (A). Some of the issues are relating to the residential status of the assessee and the benefit of the DTAA and others are disallowance of expenditure u/s 40(a)(ia) of the I.T. Act, 1961 apart from computation of capital gain arising from sale of shares. Therefore, multiple issues have been raised by the assessee in the appeal which are both factual as well as legal in nature and could be SA No 33 of 2024 Orbis Real Estate Fund Page 3 of 3 considered and decided after a thorough examination of the relevant facts as well as the contention of the parties at the time of hearing of the appeal of the assessee. Accordingly, we do not find any merit in the stay petition filed by the assessee. However, an out of turn hearing is granted to the assessee for hearing of the appeal which is already fixed on 19/12/2024. The parties are directed not to take any adjournment of the hearing of the appeal and shall file paper book, if any, well in advance. The registry is directed to list the appeal of the assessee in the category of out of turn hearing on 19/12/2024. 5. In the result, S.A. filed by the assessee is dismissed and out of turn hearing of the appeal is hereby granted. Order pronounced in the Open Court on the conclusion of hearing on 29th November, 2024. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 29th November, 2024 Vinodan/sps Copy to: S.No Addresses 1 Orbis Real Estate Fund-1 Plot No.54, Road No.2, Sagar Society, Banjara Hills, Hyderabad 500034, Telangana 2 ADIT – International Taxation-2, Aayakar Bhavan, Opp: LB Stadium, Basheerbagh, Hyderabad 500004 3 Pr. CIT – Hyderabad/Director of Income Tax (Int. Taxation) Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "