ACIT Vs Calchennai Mobile Worx P. Ltd (ITAT Chennai)
As per asset purchase agreement between the assessee and the purchaser, agreed consideration for transfer of business/asset is Rs 5.76 crores. In fact, the buyer has confirmed having paid entire agreed consideration for transfer of business. The assessee claims that it has received a sum of Rs. 2.64 crores for the impugned assessment year and balance amount was withheld by the purchaser for dispute on certain issues including non-compete agreement clauses in agreement. Although, the assessee claims that it has received only part consideration in terms of Asset Purchase Agreement (APA) agreement, but facts are not clear. The AO claims that the assessee has received full amount whereas, the assessee claims that it has received only part amount. The assessee also claims that there is dispute between the assessee and the purchaser on the issue of non-compete agreement. Although, the assessee claims that there is dispute between the assessee and the purchaser, but no evidence has been brought on record to substantiate the claim. Therefore, we are of the considered view that the issue needs to go back to the file of the Assessing Officer for re-examination of various averments made by the assessee and also to re-compute the income in terms of APA between the assessee and the purchaser of the business. Hence, we set aside the issue to the file of the AO and direct the Assessing Officer to re-consider the issue in light of agreement between the parties and also the claim that there is dispute between the parties on certain issues. The AO is also directed to consider the issue of settlement of dispute on the very same issue by the assessee in their appeal under VSVS Scheme, 2020 while computing the income in terms of APA between the parties.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the Revenue is directed against the order passed by the learned Commissioner of Income-tax (Appeals)-1, Chennai, dated 27.12.2016 and pertains to assessment year 20 12-13.
2. The Revenue has raised the following grounds of appeal:
