IDEA CELLULAR LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE . Rule is made returnable forthwith and heard finally.

(2.) THE petitioner has, inter -alia, challenged an order dated 9th May, 2013, passed by the Deputy Commissioner of Income Tax - Respondent No.2 on its application for stay of a demand of Rs.1517,69,27,480/ - for assessment year 2010 -2011. This order was upheld by the order dated 29th May, 2013, passed by respondent No.3 - Additional Commissioner of Income Tax and was further approved by the order of respondent No.4 dated 12th June, 2013. These orders are also impugned. Respondent No.2 directed the petitioner not to be treated as an assessee -in -default subject to its depositing Rs.84.31 crores on or before the 25th day of each month from the month of May, 2013 to February, 2014 and a sum of Rs. 57.34 crores for the month of March, 2014. The aggregate amount was, therefore, Rs.900.47 crores. There was a total stay of the demand to the extent of Rs.617.22 crores.

(3.) AN addition of Rs.2069.45 crores was made under section 28(iv) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") on the net value of the assets of the telecom undertaking of Aditya Birla Telecom Limited (hereinafter referred to as "ABT Ltd."), a wholly owned subsidiary of the petitioner. Pursuant to a scheme of reconstruction under section 391 and 394 of the Companies Act, certain assets only of ABT Ltd. stood transferred to and vested in the petitioner. The scheme was sanctioned by the respective High Courts in the petitions filed by the transferor (ABT Ltd.) and the transferee (petitioner) companies. Being its wholly owned subsidiary no shares were issued by the petitioner to ABT Ltd. The petitioner's case is that the rights in respect of Bihar and Jharkhand circles were held by ABT Ltd. even prior to the bifurcation of the States.