C.IT. ASR vs. URMIL KAPOOR

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ITR/75/1997HC Punjab & HaryanaPHHC01035451199705 July 2010Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, in its decision dated 5.7.2010, answered the question of law against the Revenue and in favour of the assessee. The Court noted that the learned counsel for the Revenue fairly stated that the matter was covered by an earlier order of the High Court dated 15.9.2008 in I.T.R. Nos. 75 to 82 of 1992, titled The Commissioner of Income-tax, Amritsar v. Sh. Pyare Lal Kapur. Based on this precedent, the Court disposed of the reference. The specific reasoning of the ITAT or the earlier High Court judgment regarding the nil cost and non-taxability of capital gains is not detailed in this judgment, but the principle established is that the Revenue's appeal on this issue was not sustainable in light of prior judicial pronouncements.

What were the facts?

The Commissioner of Income Tax (Revenue) filed an Income Tax Reference (ITR) No. 75 of 1997 before the High Court of Punjab and Haryana at Chandigarh. The reference arose from an order of the Income Tax Appellate Tribunal (ITAT) dated 9.4.1996 in I.T.A. No. 678(ASR)/1990 concerning assessment year 1983-84. The dispute pertains to the taxability of consideration received by the assessee, Smt. Urmil Kapoor, for the transfer of controlling interest and relinquishment of directorship rights in shares. The ITAT had dismissed the Revenue's appeal.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in dismissing the appeal of the Revenue by holding that the consideration received for transfer of controlling interest and relinquishment of directorship rights in shares was not taxable as the cost was nil and no capital gain was chargeable thereon? Contentions: Assessee: Not recorded. Revenue: Argued that the consideration received for the transfer of controlling interest and relinquishment of directorship rights in shares was taxable as capital gains, contending that the cost was nil and therefore capital gains were chargeable. The Revenue's appeal was dismissed by the ITAT.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.R. No.75 of 1997 Date of decision: 5.7.2010 The Commissioner of Income Tax. -----Applicant. Vs. Smt. Urmil Kapoor. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Ms. Naveender P.K. Singh, Sr. Standing Counsel for the applicant. --- ADARSH KUMAR GOEL, J.

Following question of law has been referred for opinion of this Court, arising out of order of the Income Tax Appellate Tribunal dated 9.4.1996 in I.T.A. No.678(ASR)/1990 for the assessment year 1983-84:- “Whether on the facts and in the circumstances of the case, the Hon’ble Tribunal was justified in law in dismissing the appeal of the Revenue by holding that the consideration received for transfer of controlling interest and relinquishment of directorship rights in shares was not taxable as the cost was nil and no capital gain was chargeable thereon?”

I.T.R. No.75 of1997

Learned counsel for the revenue fairly states that the matter is covered by earlier order of this Court dated 15.9.2008 in I.T.R. Nos.75 to 82 of 1992 The Commissioner of Income-tax, Amritsar v. Sh. Pyare Lal Kapur.

In view of above, the question referred is answered against the revenue and in favour of the assessee.

The reference is disposed of. (ADARSH KUMAR GOEL) JUDGE July 05, 2010 ( AJAY KUMAR MITTAL ) ashwani JUDGE 2

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