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Showing contexts for: Deferred consideration in Fullerton Financial Holdings Pte. ... vs The Assistant Commissioner Of ... on 28 October, 2025Matching Fragments
Ground 5: Without prejudice to the above, the taxability in the hands of the holding entity.
5.1 Without prejudice to the above grounds, it is submitted that if the Appellant were appropriately deemed a shell or conduit company under Article 24A(3), the capital gains would have been assessable in the hands of its parent, Fullerton Management Pte. Limited ('FMPL') and not taxable under the DTAA.
Ground No.6: Without prejudice to the above grounds, the AO/DRP failed to consider the revised sales price of the share arising from a contingent deferred consideration that was not received by the assessee.
6.1 The AO/DRP failed to consider the revised sale price arising due to the contingent deferred consideration that was not received by the Appellant during the year under consideration or subsequently cannot be taxed on a hypothetical basic.
5 ITA No.1137/Mum/2025; A.Y. 2022-23Fullerton Financial Holdings Pte. Ltd.
6.2 The AO/DRP failed to consider that income taxable under Sections 4 and 5 of the Act cannot include hypothetical income that has not been received or will not be received by the Appellant.
Re: Ground of Appeal No. 5: Without prejudice to the above, the taxability in the hands of the holding entity:
55. It is respectfully submitted that if the Appellant is deemed a shell or conduit company under Article 24A(3), the capital gains would have been assessable in the hands of its parent or the Government of Singapore, in which case the same will also not be taxable in India under the DTAA.
Re: Ground of Appeal No. 6; Without prejudice to the above, Contingent Deferred Consideration Fullerton Financial Holdings Pte. Ltd.
-Not Taxable in the Absence of Accrual or Receipt
56. As per the terms of the Share Purchase Agreement, SMEG had agreed to pay the said contingent deferred consideration upon fulfilment of certain specified conditions. However, since the stipulated conditions were not met, the contingent consideration of INR 3.36 per share was never paid to the Appellant and will never be paid as the period of the contingent deferred consideration has lapsed
57. SMFG confirmed the non-fulfilment of the conditions and the consequent non-payment of the contingent consideration by way of a written communication dated April 25, 2024 (refer to pages Nos. 1788 to 1790 of the Factual PB)