THE COMMSISIONER OF INCOME TAX, vs. SHRI G V GURUPRASAD

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ITA/891/2008HC KarnatakaKAHC01039521200812 September 2012Bench: B.MANOHAR,K.SREEDHAR RAO2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Karnataka, Bangalore, dismissed the appeal filed by the Revenue. The Court referred to its own decision in the case of Income Tax Officer Vs. R. Sathyanarayana (ITA No. 25/2001, decided on 17.12.2007). Following this precedent, the Court held that the question of law framed at the time of admitting the appeal, which asked whether the Tribunal was justified in holding the capital gains arising out of the sale of the residential house of the respondent-assessee as long-term capital gains, was answered against the revenue. Therefore, the appeal was dismissed. No other issues were decided, and no specific relief was granted or denied beyond the dismissal of the appeal.

What were the facts?

The Commissioner of Income Tax and the Income Tax Officer (collectively referred to as the Revenue) filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order dated May 9, 2008, passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The ITAT's order was in ITA No. 1121/BNG/2007 for the Assessment Year 2004-2005. The Revenue sought to set aside the ITAT's order, which had presumably upheld the orders of the Appellate Commissioner and the Income Tax Officer. The appeal was admitted by the High Court of Karnataka, Bangalore, with a substantial question of law framed.

What were the issues?

1. Whether the Tribunal was justified in holding the capital gains arising out of the sale of the residential house of the respondent-assessee as long-term capital gains? (Question of law) The Revenue contended that the ITAT erred in classifying the capital gains from the sale of the residential house as long-term capital gains. The Assessee's arguments are not recorded in the judgment. The Revenue relied on the decision of this Court in ITA No. 25/2001 decided on 17.12.2007 in the case of Income Tax Officer Vs. R. Sathyanarayana.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 12TH DAY OF SEPTEMBER, 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR I.T.A. No.891 OF 2008 BETWEEN:- 1. The Commissioner of Income Tax, C.R. Building, Queens Road, Bangalore. 2. The Income Tax Officer, Ward-4(3), C.R. Building, Queens Road, Bangalore. Appellants (By Sri K.V. Aravind, Advocate) AND:- Sri G.V. Guru Prasad, ‘Prasada’, No.53-C, 32nd Main, 8th Cross, I Phase, J.P. Nagar, Bangalore-560078. Respondent (By Sri A. Shankar and Sri M. Lava, Advocates)

2 This I.T.A. is filed U/s.260-A of I.T. Act, 1961 arising out of order dated 09.05.2008 passed in I.T.A.No.1121/BNG/2007 for the Assessment Year 2004- 2005, praying that this Hon’ble Court may be pleased to (i) formulate the substantial questions of law stated therein and (ii) allow the appeal and set-aside the order of the ITAT, Bangalore in ITA No.1121/BNG/2007 dated 09.05.2008 confirm the orders of the Appellate Commissioner and confirm the order passed by the Income Tax Officer, Ward- 4(3), Bangalore, in the interest of justice and equity. This appeal is coming on for final hearing this day, SREEDHAR RAO, J., delivered the following: J U D G M E N T In view of the decision of this Court in ITA No.25/2001 decided on 17.12.2007 in the case of Income Tax Officer Vs. R. Sathyanarayana, the question of law framed by this Court while admitting the appeal which reads thus: “Whether the Tribunal was justified in holding the capital gains arising out of sale of residential house of the respondent-assessee as a long-term capital gains?” has been answered against the revenue. Accordingly, this appeal is dismissed. Sd/- JUDGE Sd/- JUDGE NM*

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