M/S. KEMFIN SERVICES PVT LTD vs THE ASSISTANT COMMISSIONER OF INCOME TAX

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 19th DAY OF JUNE 2020

PRESENT

THE HON’BLE MR. JUSTICE ALOK ARADHE

AND

THE HON’BLE MR. JUSTICE M. NAGAPRASANNA

I.T.A. NO.162 OF 2012 BETWEEN:

M/S. KEMFIN SERVICES PVT.LTD., KEMWELL HOUSE, 11, TUMKUR ROAD, BENGALURU – 560 022 (REPRESENTED BY ITS DIRECTOR SRI. S.N. BASANIWAL, AGED ABOUT 54 YEARS, S/O LATE PANNALAL BASANIWAL) ... APPELLANT

(By Sri.SHARATH, ADV. FOR MR.CHYTHANYA K.K, ADV.,)

AND:

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE – 11(5), BENGALURU ... RESPONDENT (By Sri.K.V.ARAVIND, ADV.) - - -

THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 31/01/2012 PASSED IN ITA NO.82/BANG/2011, FOR THE ASSESSMENT YEAR 2007-08, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO: (I) FORUMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN.

(II) ALLOW THE APPEAL AND SET ASIDE THE ORDER DATED 31/01/2012 PASSED BY THE ITAT BEARING ITA NO. 82/BANG/2011, IN THE INTERST OF JUSTICE AND EQUITY.

THIS ITA COMING ON FOR FINAL HEARING, THIS DAY, ALOK ARADHE J., DELIVERED THE FOLLOWING:

JUDGMENT

Mr.Chythanya K.K., learned counsel for the appellant. Mr.K.V.Aravind, learned counsel for the revenue.

This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’, for short) has been filed by the assessee which was admitted by a Bench of this Court vide order dated 28.08.2012 on the following substantial question of law:

(i) Whether on the facts and in the circumstances of the case, the Honourable ITAT was right in law in holding that the income arising on sale of shares held as capital asset after conversion from stock in trade as business income and not as capital gains?

When the matter was taken up today, learned counsel for the parties jointly submitted that the substantial question of law framed by this Court has already been answered by a judgment of this Court in ITA No.149/2011 c/w ITA No.70/2011 dated 11.06.2020.

In view of the aforesaid submission and for the reasons assigned in the aforesaid judgment, the substantial question of law framed in this appeal is answered in favour of the assessee and against the revenue. The order passed by the Tribunal is quashed. In the result, the appeal is allowed.

Sd/- JUDGE

M/S. KEMFIN SERVICES PVT LTD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX