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ArcelorMittal Case: HC dismisses 2 Ruia Cos’ plea against ruling to deposit ₹82 cr
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Synopsis
In the case, the two firms, Essar House and Essar Services India, had received ₹35 crore and ₹47 crore, respectively, from Essar Steel as security deposit for office space and services.
Agencies
The December 10 order directed the Ruias to deposit ₹82 crore within eight weeks in the court as security in two separate arbitration suits filed by ArcelorMittal Nippon Steel India.
Mumbai: The Bombay High Court dismissed a plea filed by two Ruias-owned companies that challenged the single bench ruling asking them to deposit ₹82 crore in the court as security in two separate arbitration suits filed by ArcelorMittal Nippon Steel India (formerly Essar Steel).
Capital gain tax on distribution of assets to partners: The ‘OtherWise’ story January 28, 2021, 5:49 PM IST
S. Vasudevan, executive partner, Lakshmikumaran & Sridharan Attorneys.
Section 45(4) of the Income Tax Act, 1961 (“the Act”) imposes capital gains tax in the hands of the partnership firm at the time of distribution of assets on dissolution of the firm or “otherwise”. For computing capital gains, the fair market value(“FMV”) of the asset on the date of transfer/ distribution by the firm is deemed to be the full value of consideration received by the firm.
The bone of contention has been this term “otherwise”. Question has arisen in various cases as to whether “otherwise” would cover an event of retirement of a partner from the firm, where the firm continues to exist without any dissolution even after such retirement. Various courts and tax authorities have ruled both in favour of and against the assessee (par
Synopsis
ArcelorMittal (formerly Essar Steel) had approached the court for urgent protective interim orders before the commencement of arbitration process under Section 17 of the Arbitration and Conciliation Act 1996.
Wikipedia
MUMBAI: The Bombay High Court has directed two companies owned by Ruias, namely Essar House Pvt Ltd (EHPL) and Essar Services India Pvt Ltd (ESIPL) to deposit collectively over Rs 82 crore within eight weeks in the court as security in two separate arbitration suits filed by ArcelorMittal Nippon Steel India Ltd.
Two companies namely Essar House Pvt Ltd (EHPL) and Essar Services India Pvt Ltd (ESIPL) had received respectively Rs 35 crore and Rs 47 crore security deposit from Essar Steel.