ASSISTANT COMMISSIONER OF INCOME TAX, CHENNAI vs. BUHARI HOLDINGS PRIVAE LIMITED, CHENNAI

ITA 325/CHNY/2024Status: DisposedITAT Chennai29 August 2024AY 2010-11Bench: SHRI MANOJ KUMAR AGGARWAL (Accountant Member), SHRI MANU KUMAR GIRI (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, holding that the capital reserve arising from the amalgamation did not constitute a benefit or perquisite taxable under Section 28(iv) as it was in the capital field and not a revenue receipt.

What were the facts?

The assessee company received shares in an amalgamated company due to its shareholding in the amalgamating company. The Assessing Officer treated the capital reserve arising from this allotment as income under Section 28(iv) of the Income Tax Act.

What were the issues?

Whether the capital reserve arising from the allotment of shares in an amalgamated company is taxable as income under Section 28(iv) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 28(iv),Section 147,Section 14A,Section 56(2)(viia),Section 2(47),Section 45,Section 47(vii)

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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

Hearing: 20.06.2024Pronounced: 29.08.2024

PER MANU KUMAR GIRI (Judicial Member)

This appeal by the Department is arising out of the order of the Commissioner of Income Tax (Appeals)-18, Chennai in order No.ITBA/APL/S/250/2023-24/1058556563 (1) dated 07.12.2023. The assessment was framed by the DCIT, Corporate Circle-I(2), Chennai for the assessment year 2009-10 u/s.143(3) r.w.s 147 of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide o

The order continues below.

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