CIT v. B.C. Srinivasa Setty

128 ITR 294Supreme Court of India1981#92 most cited

What is CIT v. B.C. Srinivasa Setty authority for?

When the cost of acquisition of a capital asset cannot be determined, the computation mechanism for capital gains fails, and thus no capital gains can be charged. This establishes a broader principle that a charging section cannot operate in the absence of specific machinery provisions for computation.

628

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2005 to 2026.

Also referred to as

CIT v. B.C. Srinivasa Setty · 128 ITR 294 · Section 45 · Section 48 · Section 55(2) · cost of acquisition · capital gains computation · machinery provision · unascertainable cost · intangible assets · taxability of goodwill · no tax without machinery

Also reported as

5 Taxmann 1

Sections most often in play

Section 143(3)Section 115JBSection 92BSection 234BSection 45Section 55(2)Section 143(2)Section 144

Issues it is cited on

section 211section 55section 32(1)(ii)section 21section 92bsection 32(1)intangible assetssection 48section 45book profitsfair market valuesection 115j

Judgments citing CIT v. B.C. Srinivasa Setty

Vatsala Shenoy vs. Jt.Commissioner of Income Tax

C.A. No.-001234-001234 - 2012Supreme Court18 Oct 2016
Section 260Section 583(4)(a)

…not only tangible items but also intangible items like, goodwill, man power, tenancy rights and value of banking licence. However, the cost of such items (intangibles) is not determinable. In the case of CIT v. B.C. Srinivasa Setty reported in [1981] 128 ITR 294, this court held that section 45 charges the profits or gains arising from the transfer of a capital asset to income-tax. In other words, it charges surplus which arises on the transfer of a capital asset in terms of appreciation of capital value of that asset. In the said judgment, this Court held that the “asset” must be one which falls withi…

Shib Narayan Kshettry -HUF, Kolkata vs. The ITO, WD-38(4), Kolkata

In the result, the appeal of the assessee is treated as partly allowed for statistical purposes

ITA 723/KOL/2015[2006-2007]Status: DisposedITAT Kolkata28 Sept 2016AY 2006-2007

Bench: Shri P.M. Jagtap

Section 55(2)

…Grant was free of cost, the cost of acquisition of the property in question, which had been partitioned from time to time, was not ascertainable. Relying on the decision of the Hon’ble Supreme Court in the case of CIT –vs.- Srinivasa Setty (B.C.) reported in 128 ITR 294, it was contended by the assessee that the sale of property in question, whose cost of acquisition was not ascertainable could not give rise to any capital gain chargeable to tax. This contention of the assessee was not found acceptable by the Assessing Officer. According to him, the Governor by the relevant Notification had given only a concessi…

The Azad Nagar, Cooperative Housing, Society Ltd, Mumbai vs. CIT 21, Mumbai

In the result, the appeals filed by the Assessee are dismissed

ITA 3881/MUM/2014[2004-05]Status: DisposedITAT Mumbai28 Sept 2016AY 2004-05

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05 Vithal Nagar Co. Operative Cit-21 Housing Society Ltd., Pratyakshkar बनाम/ 51 N.S.S. Rd No.11, Bhavan, Bkc Vs. Jia Hind Club, Jvpd Scheme, Bandra (E) Mumbai-400056 Mumbai- 400050 (Revenue) (Respondent ) P.A. No.Aaaat3055F Assessment Year: 2004-05 The Navyug Co. Operative Cit-21 Housing Society Ltd. Pratyakshkar बनाम/ Plot No. 51 Jain Hind Club Bhavan, Bkc Vs. Gldg. N.S. Rd No.11, Jai Hind Bandra (E) Society Jvpd Scheme Vile Mumbai- 400050 Parle (W) Mumbai-400049 (Revenue) (Respondent ) P.A. No.Aaaat0325L Assessment Year: 2004-05

Section 143(3)Section 147Section 263Section 50C

…e costs payable by them amounting in all to Rs.60,01,030, which is the total estimate cost of acquisition and development of the whole area (emphasis supplied). The assessee places reliance on the Supreme Court' judgement in case of B.C. Srinivasa Shetty 1981 128 ITR 294 and humbly submits that if the Cost of acquisition of the above mentioned asset is taken as 'NIL' then the receipt of money in the hands of the assessee’s capital receipt without any cost and the same cannot be taxed as long term capital gains." 3.11. Thereafter, the AO concluded the assessment without accepting aforesaid submissions of the asses…

Vallabhnagar Operative Housing Society Ltd, Mumbai vs. CIT 21, Mumbai

In the result, the appeals filed by the Assessee are dismissed

ITA 3659/MUM/2014[2004-05]Status: DisposedITAT Mumbai28 Sept 2016AY 2004-05

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05 Vithal Nagar Co. Operative Cit-21 Housing Society Ltd., Pratyakshkar बनाम/ 51 N.S.S. Rd No.11, Bhavan, Bkc Vs. Jia Hind Club, Jvpd Scheme, Bandra (E) Mumbai-400056 Mumbai- 400050 (Revenue) (Respondent ) P.A. No.Aaaat3055F Assessment Year: 2004-05 The Navyug Co. Operative Cit-21 Housing Society Ltd. Pratyakshkar बनाम/ Plot No. 51 Jain Hind Club Bhavan, Bkc Vs. Gldg. N.S. Rd No.11, Jai Hind Bandra (E) Society Jvpd Scheme Vile Mumbai- 400050 Parle (W) Mumbai-400049 (Revenue) (Respondent ) P.A. No.Aaaat0325L Assessment Year: 2004-05

Section 143(3)Section 147Section 263Section 50C

…e costs payable by them amounting in all to Rs.60,01,030, which is the total estimate cost of acquisition and development of the whole area (emphasis supplied). The assessee places reliance on the Supreme Court' judgement in case of B.C. Srinivasa Shetty 1981 128 ITR 294 and humbly submits that if the Cost of acquisition of the above mentioned asset is taken as 'NIL' then the receipt of money in the hands of the assessee’s capital receipt without any cost and the same cannot be taxed as long term capital gains." 3.11. Thereafter, the AO concluded the assessment without accepting aforesaid submissions of the asses…

Suvarna Nagar Co Operative Housing Society Ltd, Mumbai vs. CIT 21, Mumbai

In the result, the appeals filed by the Assessee are dismissed

ITA 3658/MUM/2014[2004-05]Status: DisposedITAT Mumbai28 Sept 2016AY 2004-05

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05 Vithal Nagar Co. Operative Cit-21 Housing Society Ltd., Pratyakshkar बनाम/ 51 N.S.S. Rd No.11, Bhavan, Bkc Vs. Jia Hind Club, Jvpd Scheme, Bandra (E) Mumbai-400056 Mumbai- 400050 (Revenue) (Respondent ) P.A. No.Aaaat3055F Assessment Year: 2004-05 The Navyug Co. Operative Cit-21 Housing Society Ltd. Pratyakshkar बनाम/ Plot No. 51 Jain Hind Club Bhavan, Bkc Vs. Gldg. N.S. Rd No.11, Jai Hind Bandra (E) Society Jvpd Scheme Vile Mumbai- 400050 Parle (W) Mumbai-400049 (Revenue) (Respondent ) P.A. No.Aaaat0325L Assessment Year: 2004-05

Section 143(3)Section 147Section 263Section 50C

…e costs payable by them amounting in all to Rs.60,01,030, which is the total estimate cost of acquisition and development of the whole area (emphasis supplied). The assessee places reliance on the Supreme Court' judgement in case of B.C. Srinivasa Shetty 1981 128 ITR 294 and humbly submits that if the Cost of acquisition of the above mentioned asset is taken as 'NIL' then the receipt of money in the hands of the assessee’s capital receipt without any cost and the same cannot be taxed as long term capital gains." 3.11. Thereafter, the AO concluded the assessment without accepting aforesaid submissions of the asses…

Vithalnagar Co Operative Housing Society Ltd, Mumbai vs. CIT 21, Mumbai

In the result, the appeals filed by the Assessee are dismissed

ITA 3656/MUM/2014[1995-96]Status: DisposedITAT Mumbai28 Sept 2016AY 1995-96

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05 Vithal Nagar Co. Operative Cit-21 Housing Society Ltd., Pratyakshkar बनाम/ 51 N.S.S. Rd No.11, Bhavan, Bkc Vs. Jia Hind Club, Jvpd Scheme, Bandra (E) Mumbai-400056 Mumbai- 400050 (Revenue) (Respondent ) P.A. No.Aaaat3055F Assessment Year: 2004-05 The Navyug Co. Operative Cit-21 Housing Society Ltd. Pratyakshkar बनाम/ Plot No. 51 Jain Hind Club Bhavan, Bkc Vs. Gldg. N.S. Rd No.11, Jai Hind Bandra (E) Society Jvpd Scheme Vile Mumbai- 400050 Parle (W) Mumbai-400049 (Revenue) (Respondent ) P.A. No.Aaaat0325L Assessment Year: 2004-05

Section 143(3)Section 147Section 263Section 50C

…e costs payable by them amounting in all to Rs.60,01,030, which is the total estimate cost of acquisition and development of the whole area (emphasis supplied). The assessee places reliance on the Supreme Court' judgement in case of B.C. Srinivasa Shetty 1981 128 ITR 294 and humbly submits that if the Cost of acquisition of the above mentioned asset is taken as 'NIL' then the receipt of money in the hands of the assessee’s capital receipt without any cost and the same cannot be taxed as long term capital gains." 3.11. Thereafter, the AO concluded the assessment without accepting aforesaid submissions of the asses…

The Navyug Co Operative Housing Society Ltd, Mumbai vs. CIT 21, Mumbai

In the result, the appeals filed by the Assessee are dismissed

ITA 3655/MUM/2014[2004-05]Status: DisposedITAT Mumbai28 Sept 2016AY 2004-05

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05 Vithal Nagar Co. Operative Cit-21 Housing Society Ltd., Pratyakshkar बनाम/ 51 N.S.S. Rd No.11, Bhavan, Bkc Vs. Jia Hind Club, Jvpd Scheme, Bandra (E) Mumbai-400056 Mumbai- 400050 (Revenue) (Respondent ) P.A. No.Aaaat3055F Assessment Year: 2004-05 The Navyug Co. Operative Cit-21 Housing Society Ltd. Pratyakshkar बनाम/ Plot No. 51 Jain Hind Club Bhavan, Bkc Vs. Gldg. N.S. Rd No.11, Jai Hind Bandra (E) Society Jvpd Scheme Vile Mumbai- 400050 Parle (W) Mumbai-400049 (Revenue) (Respondent ) P.A. No.Aaaat0325L Assessment Year: 2004-05

Section 143(3)Section 147Section 263Section 50C

…e costs payable by them amounting in all to Rs.60,01,030, which is the total estimate cost of acquisition and development of the whole area (emphasis supplied). The assessee places reliance on the Supreme Court' judgement in case of B.C. Srinivasa Shetty 1981 128 ITR 294 and humbly submits that if the Cost of acquisition of the above mentioned asset is taken as 'NIL' then the receipt of money in the hands of the assessee’s capital receipt without any cost and the same cannot be taxed as long term capital gains." 3.11. Thereafter, the AO concluded the assessment without accepting aforesaid submissions of the asses…

Jai Hind Co Op Hsg Soc Ltd, Mumbai vs. CIT 21, Mumbai

In the result, the appeals filed by the Assessee are dismissed

ITA 2363/MUM/2014[2004-05]Status: DisposedITAT Mumbai28 Sept 2016AY 2004-05

Bench: Shri Amit Shukla & Shri Ashwani Tanejaassessment Year: 2004-05 Vithal Nagar Co. Operative Cit-21 Housing Society Ltd., Pratyakshkar बनाम/ 51 N.S.S. Rd No.11, Bhavan, Bkc Vs. Jia Hind Club, Jvpd Scheme, Bandra (E) Mumbai-400056 Mumbai- 400050 (Revenue) (Respondent ) P.A. No.Aaaat3055F Assessment Year: 2004-05 The Navyug Co. Operative Cit-21 Housing Society Ltd. Pratyakshkar बनाम/ Plot No. 51 Jain Hind Club Bhavan, Bkc Vs. Gldg. N.S. Rd No.11, Jai Hind Bandra (E) Society Jvpd Scheme Vile Mumbai- 400050 Parle (W) Mumbai-400049 (Revenue) (Respondent ) P.A. No.Aaaat0325L Assessment Year: 2004-05

Section 143(3)Section 147Section 263Section 50C

…e costs payable by them amounting in all to Rs.60,01,030, which is the total estimate cost of acquisition and development of the whole area (emphasis supplied). The assessee places reliance on the Supreme Court' judgement in case of B.C. Srinivasa Shetty 1981 128 ITR 294 and humbly submits that if the Cost of acquisition of the above mentioned asset is taken as 'NIL' then the receipt of money in the hands of the assessee’s capital receipt without any cost and the same cannot be taxed as long term capital gains." 3.11. Thereafter, the AO concluded the assessment without accepting aforesaid submissions of the asses…

Muller & Phipps (I) Ltd, Mumbai vs. DCIT Cir 2(2), Mumbai

In the result appeal filed by the assessee for the A

ITA 5575/MUM/2013[2001-02]Status: DisposedITAT Mumbai16 Sept 2016AY 2001-02

Bench: Shri R.C.Sharma (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2001-02

For Appellant: Shri. Nitin KulkarniFor Respondent: Shri. G. Nanthakumar
Section 143(3)Section 148Section 271Section 271(1)(c)Section 274Section 55(2)

…account of transfer of trademark prior to 31.3.2001 i.e. prior to the amendment in section 55(2) of the Income Tax Act, 1961 and that the said receipt was properly disclosed as not liable for tax following Supreme Court decision in B C Srinivasa Setty v/s CIT 128 ITR 294, in the return of income filed on 29th October, 2002 4. CIT(A) has erred and disregarded that AO had not considered the details submitted to him and the explanations offered during the assessment of income were correct and had wrongly treated the transaction as taxable capital gains. 5. CIT(A) has erred and had failed to appreciate that the app…

DCIT, Chennai vs. M/S. W.S.Industries (India) Limited, Chennai

ITA 966/CHNY/2005[2001-02]Status: DisposedITAT Chennai08 Sept 2016AY 2001-02

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. A.V. Sreekanth, IRS, JCITFor Respondent: Shri. R. Vijayaraghavan, Advocate
Section 139Section 139(1)Section 143(1)Section 143(2)Section 143(3)Section 43B

…Assessing Officer treated the non compete fee as Goodwill and whereas Goodwill is a capital asset within the meaning of Sec.45 r.w.s 55(2)(a) of the Act w.e.f. 01.04.1995 and ld. Assessing Officer relied on the Apex Court decision of B.C. Srinivasa Shetty 128 ITR 294 were it was held that in the case of transfer of goodwill, a capital asset which had no cost of acquisition, no capital gains would result. However, since the amendment was effected defining Goodwill as a capital asset within the meaning of Sec. 55(2)(a) of the Act. Considering the amended law and interpretations the ld. Assessing Officer tre…

ACIT, Chennai vs. M/S. S.S.B.Industries Limited Now Amalgamated With M/S.W.S.Industries (India) Limited, Chennai

ITA 1840/CHNY/2005[2001-02]Status: DisposedITAT Chennai08 Sept 2016AY 2001-02

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. A.V. Sreekanth, IRS, JCITFor Respondent: Shri. R. Vijayaraghavan, Advocate
Section 139Section 139(1)Section 143(1)Section 143(2)Section 143(3)Section 43B

…Assessing Officer treated the non compete fee as Goodwill and whereas Goodwill is a capital asset within the meaning of Sec.45 r.w.s 55(2)(a) of the Act w.e.f. 01.04.1995 and ld. Assessing Officer relied on the Apex Court decision of B.C. Srinivasa Shetty 128 ITR 294 were it was held that in the case of transfer of goodwill, a capital asset which had no cost of acquisition, no capital gains would result. However, since the amendment was effected defining Goodwill as a capital asset within the meaning of Sec. 55(2)(a) of the Act. Considering the amended law and interpretations the ld. Assessing Officer tre…

Pinakin Gunvantlala Dalal, Mumbai vs. ITO (It) 1(1), Mumbai

The appeal of the assessee is dismissed

ITA 881/MUM/2013[2008-09]Status: DisposedITAT Mumbai07 Sept 2016AY 2008-09

Bench: Shri Joginder Singh & Shri Rajendraassessment Year-2008-09 Pinakin Gunvantlal Dalal, Ito(It)1-(1) 17, 2Nd Floor, 1St Floor, Scindia House, बनाम/ Rajgir Chambers, Ballard Pier, Vs. S.B.S. Road, Fort, N.M. Road, Opp. Old Custom House, Mumbai-400038 Mumbai-400023 Pan No. Aadpd0932F (राज"व /Revenue) ("नधा"रती /Assessee)

Section 48Section 49Section 49(1)Section 49(1)(iv)Section 55Section 55(2)(a)

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ सी, मुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “C”, MUMBAI "ी जोिग"दर "सह, "याियक सद"य एवं "ी राजे"", लेखा सद"य, के सम" । Before Shri Joginder Singh, Judicial Member and Shri Rajendra, Accountant Member Assessment Year-2008-09 Pinakin Gunvantlal Dalal, ITO(IT)1-(1) 17, 2nd Floor, 1st Floor, Scindia House, बनाम/ Rajgir Chambers, Ballard Pier, Vs. S.B.S. Road, Fort, N.M. Road, Opp. Old Custom House, Mumbai-400038 Mumbai-400023 PAN No. AADPD0932F (राज"व /Revenue) ("नधा"रती /Assessee) "नधा"रती क" ओर से / Assessee by Shri Neelkanth Khandelwal Shri Jitendra Kumar-DR…

Shriram Retail Holdings Private Limited, Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee is allowed for statistical purpose

ITA 885/CHNY/2015[2010-2011]Status: DisposedITAT Chennai10 Aug 2016AY 2010-2011

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. R. Sivaraman, AdvocateFor Respondent: Smt. Parmindu, CIT
Section 115JSection 142(1)Section 143(1)Section 143(3)Section 14A

…hmadabad "B" Bench in the case of Ajay Singh Mehta v. DCIT [114 ITD 628]. In the case cited by the AO, the Hon'ble ITAT Ahmadabad 'B' Bench, relied upon the ratio of the decision of the Supreme Court of India in the case of CIT v. B.C. Srinivasa Setty [1981] [128 ITR 294] in coming to the view that assessee will not be entitled to claim the deduction under short term capital loss in the absence of value being assigned to the consideration :- 13 -: received on transfer of warrants for the purpose of computation of capital gains u/s.48 of the I. T. Act. The ratio of the decisions relied upon by the AR of the appel…

Allcatel Usa Sourcing Lp ( Included in Alcatel-Lucent Usa Inc.), Mumbai vs. Addl DIT (It) RG 1, Mumbai

In the result, all the appeals filed by the assessees are allowed for statistical purpose

ITA 8601/MUM/2010[2006-07]Status: DisposedITAT Mumbai05 Aug 2016AY 2006-07

Bench: Shri B.R. Baskaran & Shri C.N. Prasadआयकर अपील सं /I.Ta No.8601 & 7533/Mum/2010 ("नधा"रण वष" / Assessment Year:2006-07 & 2007-08 M/S. Alcatel Usa Sourcing The Addl. Director Of बनाम/ Lp (Included In Alcatel- Income-Tax (International Vs. Lucent Usa Inc.) Taxation)-1, C/O Pricewaterhouse Scindia House, Coopers, Mumbai Pwc House, 4Th Floor, Guru Nanak Road, Bandra(W), Mumbai-400 050 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aalfa9998A आयकर अपील सं /I.Ta No.7534 & 7535/Mum/2011 ("नधा"रण वष" / Assessment Year:2007-08 & 2008-09 M/S. Alcatel Usa Sourcing The Addl. Director Of बनाम/ Inc (Included In Alcatel- Income-Tax (International Vs. Lucent Usa Inc.) Taxation)-1, C/O Pricewaterhouse Scindia House, Coopers, Mumbai Pwc House, 4Th Floor, Guru Nanak Road, Bandra(W), Mumbai-400 050 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aagca4535R .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri P.J. Pardiwalla अपीलाथ" ओर से/ Appellant By: Shri Madhur Agarwal Shri K.K. Ved ""यथ" क" ओर से/Respondent By: Shri Jasbir Chauhan

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Jasbir Chauhan
Section 143(3)Section 144C(13)Section 234B

…(Rs.11 ,43,00,000) is assessable as capital gains under Article 13 of the DTAA. 3.8. CASE LAWS RELIED UPON BY THE LEARNED AO 39 M/s. Alcatel USA Sourcing LP 3.9. ANY ADDITIONAL NEW CASE LAWS WHICH THE ASSESSEE MAY LIKE TO RELY UPON • B. C. Srinivasa Setty 128 ITR 294 (SC) • CIT v. N.N. Desai [1991] 192 ITR 153 (Bom) • CIT v. S.S. Sukhi [1989] 177 ITR 84 (Bom) 3.10. FACTUAL & LEGAL ARGUMENTS AGAINST THE ADDITION PROPOSED BY THE AO 3.10.1 At the outset, the assessee wishes to reiterate that the consideration of USD 2.54 million was received towards discounts due for the huge volume of services given to Axes ov…

Fibres & Fabrics International Private Limited, Bangalore vs. DCIT, Bangalore

In the result, both the appeals are allowed

ITA 918/BANG/2013[2008-09]Status: DisposedITAT Bangalore13 Jul 2016AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Shri Sunil Kumar Agarwala, Jt. CIT(DR)
Section 32(1)(ii)

…atents, copyrights, trademark, licences, franchises in order to hold that it constitutes intangible asset in the light of the very undisputed fact that it is a "self generated asset" as held by the Supreme Court in the case of M/s B.C. Srinivas Setty vs. CIT (128 ITR 294(SC) ) which may or may not appear in balance sheet and it normally appreciates in its value throughout the period of assessee's business. Actually, there is no negative growth for the "goodwill". Hence, whether there is a prescribed rate for intangible asset or not for an asset like "goodwill" in the I.T. Rules, 1962, the asset like "goodwill" wi…

DCIT Cir 6(3), Mumbai vs. Mattel Toys(India) P. Ltd, Mumbai

ITA 4350/MUM/2014[2008-09]Status: DisposedITAT Mumbai08 Jul 2016AY 2008-09
For Appellant: S/Shri Ajit Kumar Jain, Pranith GolechaFor Respondent: Shri N.K. Chand
Section 115Section 143(3)Section 254(1)

…sary checks against arbitrariness while at the same time addressing the apprehension of tax avoidance.” 64. In the absence of any machinery provision, bringing an imagined transaction to tax is not possible. The decisions in CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294 (SC) and PNB Finance Ltd. v, CIT (2008) 307 ITR 75 (SC) make this position explicit. Therefore, where the existence of an international transaction involving AMP expense with an ascertainable price is- unable to be shown to exist, even if such price is nil, Chapter X provisions cannot be invoked to undertake a TP adjustment exercise. 65. As alrea…

Liugong India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is partly allowed, as indicated above

ITA 1482/DEL/2015[2010-11]Status: DisposedITAT Delhi28 Jun 2016AY 2010-11

Bench: Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. Manoj Pardasani, CAFor Respondent: Sh. Amrendra Kumar, CIT/DR
Section 143(3)Section 144C(5)

…scheme encapsulating the legislative policy and mandate which provides the necessary checks against arbitrariness while at the same time addressing the apprehension of tax avoidance. 76. As explained by the Supreme Court in CIT v. B. C. Srinivasa Setty [1981] 128 ITR 294 (SC) and PNB Finance Ltd. v. CIT [2008] 307 ITR 75 (SC) in the absence of any machinery provision, bringing an imagined international transaction to tax is fraught with the danger of invalidation. In the present case, in the absence of there being an international transaction involving AMP spend with an ascertainable price, neither the substantiv…

ACIT, New Delhi vs. M/S Gyan Enterprises Pvt. Ltd., New Delhi

In the result, all the appeals of the Revenue are dismissed

ITA 1594/DEL/2010[2004-05]Status: DisposedITAT Delhi22 Jun 2016AY 2004-05

Bench: Shri J. Sudhakar Reddy & Ms. Suchitra Kamble

For Appellant: Shri K.K.Jaiswal, D.RFor Respondent: Sh. M.P.Rastogi, Adv. And Sh. Ajay Marwah, C.A

…M/s Trojan Developers Pvt. Ltd., as determined by the Departmental Valuation Officer (DVO), for the purpose of determination of capital gains on sale of shares, is not sustainable in law. Reliance was placed on the following case laws. (i) B.C.Srinivas Shetty 128 ITR 294 (S.C.) (ii) CIT vs. George Handerson & Co. Ltd. 66 ITR 622 (S.C.) (iii) CIT vs. Smt.Nilopher I Singh, 309 ITR 233 (Del H.C.) (i) An amount of Rs.3.22 crores advanced by the purchasers of shares to M/s Trojan Developers Pvt. Ltd. cannot be considered as part of sale consideration, as M/s Trojan Developers Pvt. Ltd. is an independent juridical per…

DCIT 3(2), Mumbai vs. Lml Ltd, Mumbai

In the result, appeal of the revenue stands dismissed

ITA 3666/MUM/2011[2006-07]Status: DisposedITAT Mumbai21 Jun 2016AY 2006-07

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…so, he held that, since there is no cost of acquisition which can be attributed to the rights surrendered by the SCB can be arrived at, therefore, in view of the decision of Hon’ble Supreme Court in the case of CIT vs B.C. Srinivasa Shetty, reported in [1981] 128 ITR 294, no capital gain is liable to be taxed. Thus, on these grounds, he deleted the addition made by the AO. 7. Before us, the Ld. Counsel for the assessee after explaining the entire facts which has been succinctly discussed above by us, he submitted that here in this case, by virtue of termination of the JV agreement the entire business of the asse…

The ACIT RG-3(2) vs. M/S. Lml Ltd

In the result, appeal of the revenue stands dismissed

ITA 3668/MUM/2004[2000-2001]Status: DisposedITAT Mumbai21 Jun 2016AY 2000-2001

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…so, he held that, since there is no cost of acquisition which can be attributed to the rights surrendered by the SCB can be arrived at, therefore, in view of the decision of Hon’ble Supreme Court in the case of CIT vs B.C. Srinivasa Shetty, reported in [1981] 128 ITR 294, no capital gain is liable to be taxed. Thus, on these grounds, he deleted the addition made by the AO. 7. Before us, the Ld. Counsel for the assessee after explaining the entire facts which has been succinctly discussed above by us, he submitted that here in this case, by virtue of termination of the JV agreement the entire business of the asse…