PR. COMMISSIONER OF INCOME TAX -7 vs. LOKVIR KAPOOR

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ITA/407/2022HC DelhiDLHC01038913202214 March 2024Bench: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV,HON'BLE MR. JUSTICE YASHWANT VARMA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that there was no manifest error in the view taken by the ITAT. The Court, after perusing the Share Purchase Agreement and the ITAT's conclusions, found no justification to hold that the sale of shares would not qualify as Long Term Capital Gains. Consequently, the appeal filed by the Revenue was dismissed. The ratio decidendi is that if the ITAT's findings, based on the evidence like the Share Purchase Agreement, are reasonable and do not contain manifest error, the High Court will not interfere. The operative direction was the dismissal of the appeal.

What were the facts?

The appeal was filed by the Pr. Commissioner of Income Tax - 7 (Revenue) against the order of the Income Tax Appellate Tribunal (ITAT). The assessee is Lokvir Kapoor. The specific assessment year(s) are not mentioned in the provided text. The dispute revolves around the classification of gains from the sale of shares as Long Term Capital Gains. The ITAT had previously ruled in favor of the assessee. The High Court was reviewing the ITAT's decision.

What were the issues?

1. Whether the sale of shares would qualify as Long Term Capital Gains, as per the provisions of the Income Tax Act, 1961. The Revenue argued that the ITAT erred in its decision. The Assessee contended that the sale of shares indeed qualified as Long Term Capital Gains. The judgment mentions a Share Purchase Agreement was considered by the ITAT. The specific arguments or reliance on authorities by either side are not detailed beyond this general framing.

AI-generated summary — verify with the full judgment below

$~23 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 407/2022

PR. COMMISSIONER OF INCOME

TAX -7

..... Appellant

Through: Mr. Aseem Chawla, Sr.SC with

Ms. Pratishtha Chaudhary and

Ms. Simran Jha, Adv.

versus

LOKVIR KAPOOR

..... Respondent

Through: Mr. Ajay Vohra, Sr. Adv. with

Mr. Aniket D. Agrawal, Mr.

Deepesh Jain and Mr. Abhisek

Singhvi, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

O R D E R %

14.03.2024

1.

Having heard Mr. Chawla, learned counsel, who appears in support of this appeal and on going through the judgment rendered by the Income Tax Appellate Tribunal [“ITAT”], we fail to find any manifest error in the view so taken. 2. Having gone through the Share Purchase Agreement as well as the conclusions rendered by the ITAT, we fail to find any justification to hold that the sale of shares would not qualify as Long Term Capital Gains. 3. Consequently, the appeal fails and shall stand dismissed.

YASHWANT VARMA, J.

PURUSHAINDRA KUMAR KAURAV, J. MARCH 14, 2024/p This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/03/2024 at 15:41:11

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