CIT v. Grace Collis

248 ITR 323Supreme Court of India2001#1977 most cited

What is CIT v. Grace Collis authority for?

The term 'transfer' under Section 2(47) includes the relinquishment of a right to property that creates an interest in the property. However, the extinguishment of rights in shares, when occurring without a formal conveyance, does not attract capital gains.

58

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2010 to 2026.

Also referred to as

Grace Collis · CIT v Grace Collis · Section 2(47) · Section 45 · extinguishment of rights · relinquishment of rights · transfer of capital asset · capital gains liability · extinguishment of shares · without conveyance · right to property

Sections most often in play

Section 35DSection 40(a)(i)Section 80HHCSection 143(3)Section 2(47)Section 28(iiid)Section 35(2AB)Section 45
Read the full judgment

Issues it is cited on

extinguishment of rightssection 269uasection 2(47)section 35dsection 39record datetransferee companytransferor companysection 49section 10(15)section 80hinterest on refund

Judgments citing CIT v. Grace Collis

Shapoorji Pallonji Infrastructure Capital, Mumbai vs. DCIT-3(3), Mumbai

Appeal is dismissed

ITA 3906/MUM/2019[2014-15]Status: DisposedITAT Mumbai27 Dec 2022AY 2014-15
For Appellant: Shri C.S. AnanthanFor Respondent: Shri Mahita Nair
Section 143(3)Section 2(47)

…2011-12, dated 6.02.2020], the Mumbai Bench of the Tribunal has, by relying upon the judgement of the Hon‟ble Supreme Court in the case Kartikeya V Sarabhai and Anr Vs. CIT: 228 ITR 163 (SC), CIT vs G Narasimhan: 236 ITR 327 (SC) and CIT vs Mrs Grace Collis: 248 ITR 323 (SC), allowed the claim for Long Term Capital Loss by holding that the extinguishment of rights of the shareholders as a result of reduction of share capital results in „transfer‟. 8. Per Contra, the Learned Departmental Representative relied upon the order passed by the Assessing Officer and the CIT(A) and submitted that the issue stands decide…

DCIT, Circle-13(1), New Delhi vs. Jarul Infrastructure Pvt. Ltd, New Delhi

In the result, the Revenue’s appeal is dismissed

ITA 3514/DEL/2019[2012-13]Status: DisposedITAT Delhi23 Jun 2022AY 2012-13

Bench: Shri Shamim Yahya & Shri Anubhav Sharma[Assessment Year: 2012-13]

…ed, it is defined under section 2(47), which reads as under:- 2(47) ‘transfer’ in relation to a capital asset, includes- (i) (ii) the extinguishment of any right therein; or. Attention of your goodself is invited to the case of CIT vs. Mrs. Grace Collis & Ors 248 ITR 320 (SC) (Copy attached), wherein the Hon’ble Supreme Court had held that restrictive meaning cannot be given to the term extinguishment of rights and the expression does not include the extinguishment of rights in a capital asset independent of and otherwise than on account of transfer. The Court held as under: - We have given careful thought to the…

DCIT, Ncc - 2 (1), Chennai vs. Shri Keezhayur Sowrirajan Sreenivasan, Chennai

In the result, appeal filed by the Revenue is dismissed

ITA 2369/CHNY/2019[2016-17]Status: DisposedITAT Chennai15 Jun 2022AY 2016-17

Bench: Shri G. Manjunatha & Shri Anikesh Banerjee

For Appellant: Mr. K.Senguttuvan, Advocate &
Section 54F

…cellation of allotment and after considering relevant facts, held that compensation received by the assesseein lieu of surrender of right is assessable under the head ‘capital gains’. The Hon’ble Kerala High Court in the case of CIT Vs. Grace Collis (2001) 248 ITR 323 has held that extinguishment of any rights therein, include extinguishment of rights in capital asset independent of or otherwise, then on account of transfer. The sum and substance of ratios laid down by various C.O. No.98/Chny/2019 courts are that extinguishment of rights therein also includes within definition of capital asset and consequ…

M/S. Mili Marketing Pvt. Ltd, New Delhi vs. DCIT, New Delhi

In the result, appeals of the assessee in ITA Nos

ITA 2510/DEL/2016[2009-10]Status: DisposedITAT Delhi27 Jan 2022AY 2009-10

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri V.K. Jain, CAFor Respondent: Shri Ishtyag Ahmed, CIT-DR
Section 143(1)Section 153C

…d as follows. "More importantly, the second issue as to whether the forfeiture of the convertible warrant amounted to a transfer within the meaning of s.2(47) of the said Act has now been made clear by the Supreme Court in the case of Mrs.Grace Collis (2001) 248 ITR 323 as also by the Karnataka High Court in BPL Sanyo Finance Ltd. (2009) 312 ITR 63. We agree with the interpretation given by the Karnataka High Court in BPL Sanyo Finance Ltd. (supra) and we see no reason to take a different view. The restrictive meaning given to the word transfer by the Supreme Court decision in Vania Silk Mills P.Ltd. (1991) 191…

M/S. Mili Marketing Pvt. Ltd, New Delhi vs. DCIT, New Delhi

In the result, appeals of the assessee in ITA Nos

ITA 2509/DEL/2016[2008-09]Status: DisposedITAT Delhi27 Jan 2022AY 2008-09

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri V.K. Jain, CAFor Respondent: Shri Ishtyag Ahmed, CIT-DR
Section 143(1)Section 153C

…d as follows. "More importantly, the second issue as to whether the forfeiture of the convertible warrant amounted to a transfer within the meaning of s.2(47) of the said Act has now been made clear by the Supreme Court in the case of Mrs.Grace Collis (2001) 248 ITR 323 as also by the Karnataka High Court in BPL Sanyo Finance Ltd. (2009) 312 ITR 63. We agree with the interpretation given by the Karnataka High Court in BPL Sanyo Finance Ltd. (supra) and we see no reason to take a different view. The restrictive meaning given to the word transfer by the Supreme Court decision in Vania Silk Mills P.Ltd. (1991) 191…

Chaturanan Industries Ltd., New Delhi vs. DCIT, New Delhi

The appeal is dismissed

ITA 3565/DEL/2016[2009-10]Status: DisposedITAT Delhi30 Sept 2021AY 2009-10

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar[Assessment Year: 2009-10] Chaturanan Industries Ltd. The Dcit, H-108, Connaught Circus, Central Circle-20(Now Cc-8), New Delhi-110001 New Delhi-110055 Pan-Aaacc0762G Assessee Revenue

Section 132Section 143(3)Section 153CSection 2(14)Section 2(47)(ii)

…eason to take a different view. The restrictive meaning given to the word transfer by the Supreme Court decision in Vania Silk Mills P. Ltd (1991) 191 ITR 647 has been over ruled by the larger bench of the Supreme Court in the case of Mrs. Grace Collis (2001) 248 ITR 323. In the present case, we find that the forfeiture of the convertible warrant has resulted in extinguishment of the right of the assesse to obtain a share in BLB Ltd. It is not a case where the asset itself has been extinguished or destroyed. A share in a company is nothing but a share in the ownership of the company. While the right of the assess…

DCIT, New Delhi vs. M/S. Azalea Infrastructure Pvt. Ltd., New Delhi

ITA 3667/DEL/2017[2012-13]Status: DisposedITAT Delhi28 Jan 2021AY 2012-13

Bench: Shri H.S.Sidhu & Shri Prashant Maharishi(Through Video Conferencing) Dcit, Vs. Azalea Infrastructure Pvt. Circle-3(2), Room No. 380B, Cr Ltd, Building, Ip Estate, New Delhi 296, Forest Lane, Neb Sarai, Sainik Farms, New Delhi Pan: Aaica8733B (Appellant) (Respondent)

For Appellant: Shri Gautam Jain and Shri LalitFor Respondent: Shri Sanjay Goel, CIT DR

…as disallowed by the learned assessing officer but was allowed by the learned CIT – A mainly relying on the decision of the honourable Delhi High Court in case of CIT V Ratan Chand Bagri 329 ITR 356 (Delhi) and honourable Supreme Court in case of Grace Collis 248 ITR 323 (SC) and of the honourable Karnataka High Court in case of Deputy Commissioner of Income Tax versus BPL Sanyo Finance Ltd 312 ITR 63. Therefore, the learned assessing officer is aggrieved and has raised the following grounds of appeal:- “1. On the facts and in circumstances of the case, Ld. C1T(A) has erred in law on facts in allowing Short term…

DCIT, Circle-II(I) vs. I.F.C.I. Ltd

In the result ITA number 2205/Del/2005 filed by the learned assessing officer is dismissed

ITA 2205/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Aug 2020AY 2001-2002

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi

Section 139Section 142Section 143

…hts therein amounts to a transfer of capital asset. It is not necessary for a capital gain to arise, that there must be a sale of a capital asset. Sale is only one of the modes of transfer as envisaged by Section 2(47) of the Act”. b. In CIT v. Grace Collis, 248 ITR 323 , the Supreme Court held that extinguishment of rights need not be on account of transfer and can be independent of transfer for the purposes of Section 2(47) of the IT Act. Relevant extract from the judgment is produced below: Page 5 of 29 “The definition of transfer in section 2(47) contemplates the extinguishment of rights in a capital asset…

Ifci Ltd vs. Addl. CIT, Circle-11(1)

In the result ITA number 2205/Del/2005 filed by the learned assessing officer is dismissed

ITA 2120/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Aug 2020AY 2001-2002

Bench: Ms Suchitra Kamble & Shri Prashant Maharishi

Section 139Section 142Section 143

…hts therein amounts to a transfer of capital asset. It is not necessary for a capital gain to arise, that there must be a sale of a capital asset. Sale is only one of the modes of transfer as envisaged by Section 2(47) of the Act”. b. In CIT v. Grace Collis, 248 ITR 323 , the Supreme Court held that extinguishment of rights need not be on account of transfer and can be independent of transfer for the purposes of Section 2(47) of the IT Act. Relevant extract from the judgment is produced below: Page 5 of 29 “The definition of transfer in section 2(47) contemplates the extinguishment of rights in a capital asset…

The Commissioner of Income Tax vs. M/S Nalwa Investment Ltd

Appeals are allowed

ITA/822/2005HC Delhi07 Aug 2020

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE SANJEEV NARULA

Section 260ASection 391Section 47

…ITA 822/2005 & connected matters Page 1 of 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 02.07.2020 Pronounced on: 07.08.2020 + ITA 822/2005 THE COMMISSIONER OF INCOME TAX-V, NEW DELHI ..... Appellant Through: Mr.Sunil Agarwal, Senior Standing Counsel with Mr.Tushar Gupta, Junior Standing Counsel for Income Tax Department. versus M/S NALWA INVESTMENT LTD. ..... Respondent Throug…

Commissioner of Income Tax Del vs. M/S Mansarovar Investments Ltd

Appeals are allowed

ITA/961/2005HC Delhi07 Aug 2020

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE SANJEEV NARULA

Section 260ASection 391Section 47

…ITA 822/2005 & connected matters Page 1 of 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 02.07.2020 Pronounced on: 07.08.2020 + ITA 822/2005 THE COMMISSIONER OF INCOME TAX-V, NEW DELHI ..... Appellant Through: Mr.Sunil Agarwal, Senior Standing Counsel with Mr.Tushar Gupta, Junior Standing Counsel for Income Tax Department. versus M/S NALWA INVESTMENT LTD. ..... Respondent Throug…

Commissioner of Income Tax Del vs. M/S Abhuinandan Investments Lt

Appeals are allowed

ITA - 853 / 2005HC Delhi07 Aug 2020
Section 260ASection 391Section 47

…ITA 822/2005 & connected matters Page 1 of 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 02.07.2020 Pronounced on: 07.08.2020 + ITA 822/2005 THE COMMISSIONER OF INCOME TAX-V, NEW DELHI ..... Appellant Through: Mr.Sunil Agarwal, Senior Standing Counsel with Mr.Tushar Gupta, Junior Standing Counsel for Income Tax Department. versus M/S NALWA INVESTMENT LTD. ..... Respondent Throug…

Commissioner of Income Tax Del vs. M/S M/S Jindal Equipment Leasi

Appeals are allowed

ITA - 935 / 2005HC Delhi07 Aug 2020
Section 260ASection 391Section 47

…ITA 822/2005 & connected matters Page 1 of 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 02.07.2020 Pronounced on: 07.08.2020 + ITA 822/2005 THE COMMISSIONER OF INCOME TAX-V, NEW DELHI ..... Appellant Through: Mr.Sunil Agarwal, Senior Standing Counsel with Mr.Tushar Gupta, Junior Standing Counsel for Income Tax Department. versus M/S NALWA INVESTMENT LTD. ..... Respondent Throug…

Commissioner of Income Tax Del vs. M/S Mansarovar Investments Ltd

Appeals are allowed

ITA - 961 / 2005HC Delhi07 Aug 2020
Section 260ASection 391Section 47

…ITA 822/2005 & connected matters Page 1 of 37 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 02.07.2020 Pronounced on: 07.08.2020 + ITA 822/2005 THE COMMISSIONER OF INCOME TAX-V, NEW DELHI ..... Appellant Through: Mr.Sunil Agarwal, Senior Standing Counsel with Mr.Tushar Gupta, Junior Standing Counsel for Income Tax Department. versus M/S NALWA INVESTMENT LTD. ..... Respondent Throug…

Carestream Health Inc, Mumbai vs. DCIT (It) 2(1)(1), Mumbai

In the result, the appeal of assessee is allowed

ITA 826/MUM/2016[2011-12]Status: DisposedITAT Mumbai06 Feb 2020AY 2011-12

Bench: Shri M.Balaganesh, Am & Shri Amarjit Singh, Jm M/S. Carestream Health Inc Vs. Dy. Commissioner Of C/O. Carestream Health Income Tax, Range-2(1)(1) India Private Limited Scindia House, M.M.Road Sunteck Centre Ballard Pier 1St Floor, Subhash Road Mumbai – 400 028 Vile Parle (E) Mumbai – 400 057 Pan/Gir No. Aaecc6050H (Appellant) .. (Respondent)

Section 10(34)Section 115Section 144C(13)Section 144C(5)Section 2(22)(d)Section 2(47)Section 45Section 48

…position that reduction of capital amounts to „transfer‟ chargeable to tax as capital gains :- (i) Kartikeya V Sarabhai and Anr vs CIT reported in 228 ITR 163 (SC) (ii) CIT vs G Narasimhan reported in 236 ITR 327 (SC) (iii) CIT vs Mrs Grace Collis reported in 248 ITR 323 (SC) f) The assessee also placed reliance on the decision of Hon‟ble Jurisdictional High Court in the case of Sadanand S Varde and Ors vs State of Maharashtra and Ors reported in 247 ITR 609 (Bom) wherein the Hon‟ble Bombay High Court ruled that the petitioners in the name of Public Interest Litigation, cannot challenge the scheme sanctioned by…

DCIT, Bangalore vs. Shri. Narayan Mandyam Veerabudhi, Bangalore

In the result, the appeal of the revenue is dismissed

ITA 1248/BANG/2016[2010-11]Status: DisposedITAT Bangalore29 Jan 2020AY 2010-11

Bench: Shri B.R Baskaran & Smt. Beena Pillaiassessment Year : 2010-11

For Appellant: Shri V Srinivasan, AdvocateFor Respondent: Shri Manjeet Singh, Addl. CIT (DR
Section 2(14)Section 2(47)Section 54F

…ration for the acquisition of the capital asset. In our view, this court was right in the view that it took that the payment of earnest money under the agreement for sale was the cost of acquisition of the capital asset." 5. CIT Vs. Mrs. Grace Collis (2001) (248 ITR 323) observed that: "We have given careful thought to the definition of "transfer" in section 2(47) and to the decision of this court in Vania Silk Mills Pvt. Ltd.'s case (1991) 191 ITR 647. In our view, the definition clearly contemplates the extinguishment of rights in a capital asset distinct and independent of such extinguishment consequent upon…

Ramji Bharany, New Delhi vs. ACIT, New Delhi

The appeals are dismissed

ITA 6066/DEL/2015[2011-12]Status: DisposedITAT Delhi27 Nov 2019AY 2011-12

Bench: Shri Prashant Maharishi & Shri K.N.Charymahesh Bharany, Vs. Acit, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi Pan: Afapb8257M (Appellant) (Respondent) Ramji Bharany, Vs. Acit, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi Pan: Afapb8261R (Appellant) (Respondent)

For Appellant: Shri MP Rastogi, AdvFor Respondent: Smt Naina Soin Kapil, Sr. DR
Section 143Section 2Section 2(47)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K.N.CHARY, JUDICIAL MEMBER Mahesh Bharany, Vs. ACIT, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi PAN: AFAPB8257M (Appellant) (Respondent) Ramji Bharany, Vs. ACIT, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi PAN: AFAPB8261R (Appellant) (Respondent) Assessee by : Shri MP Rastogi, Adv Revenue by: Smt Naina Soin Kapil, Sr. DR Date of Hearing 28/08/2019 Date of pronouncement 27/11/2019 O R D E R PER PRASHANT MAHARISHI, A. M. 1. These are the two appeals of two different in…

Mahesh Bharany, New Delhi vs. ACIT, New Delhi

The appeals are dismissed

ITA 6065/DEL/2015[2011-12]Status: DisposedITAT Delhi27 Nov 2019AY 2011-12

Bench: Shri Prashant Maharishi & Shri K.N.Charymahesh Bharany, Vs. Acit, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi Pan: Afapb8257M (Appellant) (Respondent) Ramji Bharany, Vs. Acit, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi Pan: Afapb8261R (Appellant) (Respondent)

For Appellant: Shri MP Rastogi, AdvFor Respondent: Smt Naina Soin Kapil, Sr. DR
Section 143Section 2Section 2(47)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K.N.CHARY, JUDICIAL MEMBER Mahesh Bharany, Vs. ACIT, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi PAN: AFAPB8257M (Appellant) (Respondent) Ramji Bharany, Vs. ACIT, 14, Sunder Nagar Market, Circle-32(1), New Delhi New Delhi PAN: AFAPB8261R (Appellant) (Respondent) Assessee by : Shri MP Rastogi, Adv Revenue by: Smt Naina Soin Kapil, Sr. DR Date of Hearing 28/08/2019 Date of pronouncement 27/11/2019 O R D E R PER PRASHANT MAHARISHI, A. M. 1. These are the two appeals of two different in…

Lustre Merchants Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 6396/DEL/2015[2008-09]Status: DisposedITAT Delhi30 Oct 2019AY 2008-09

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2008-09 Lustre Merchants Pvt. Ltd., Vs Dcit, C/O Kapil Goel, Advocate, Circle 4(1), A-1/25, Sector-15, New Delhi. Rohini, Delhi. Pan: Aaacl2457D (Appellant) (Respondent) Assessee By : Shri Kapil Goel, Advocate, Revenue By : Ms Ashima Neb, Sr. Dr Date Of Hearing : 29.08.2019 Date Of Pronouncement : 30.10.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 21St September, 2015 Of The Cit(A)-5, New Delhi, Relating To Assessment Year 2008-09. 2. This Is The Second Round Of Litigation Before The Tribunal.

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Ms Ashima Neb, Sr. DR
Section 143(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : B : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year: 2008-09 Lustre Merchants Pvt. Ltd., Vs DCIT, C/o Kapil Goel, Advocate, Circle 4(1), A-1/25, Sector-15, New Delhi. Rohini, Delhi. PAN: AAACL2457D (Appellant) (Respondent) Assessee by : Shri Kapil Goel, Advocate, Revenue by : Ms Ashima Neb, Sr. DR Date of Hearing : 29.08.2019 Date of Pronouncement : 30.10.2019 ORDER PER R.K. PANDA, AM: This appeal filed by the assessee is directed against the order dated 21st September, 2015 of the CIT(A)-5, New Delhi,…

Nayan Traders Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3134/DEL/2016[2009-10]Status: DisposedITAT Delhi26 Apr 2019AY 2009-10

Bench: Shri H.S. Sidhu & Shri O.P. Kantassessment Year: 2009-10 M/S. Nayan Traders Pvt. Ltd., Vs. Dcit, H-108, Connaught Circus, Central Circle-8, New Delhi New Delhi Pan :Aaacn8677K (Appellant) (Respondent) Appellant By Shri Ashwani Seth, Ca & Shri V.K. Jain, Ca Respondent By M/S. Pramita M. Biswas, Cit(Dr)

Section 132Section 153CSection 2(14)Section 2(47)(ii)

…d as follows. “More importantly, the second issue as to whether the forfeiture of the convertible warrant amounted to a transfer within the meaning of s.2(47) of the said Act has now been made clear by the Supreme Court in the case of Mrs. Grace Collis (2001) 248 ITR 323 as also by the Karnataka High Court in BPL Sanyo Finance Ltd. (2009) 312 ITR 63. We agree with the interpretation given by the Karnataka High Court in BPL Sanyo Finance Ltd. (supra) and we see no reason to take a different view. The restrictive meaning given to the word transfer by the Supreme Court decision in Vania Silk Mills P.Ltd. (1991) 191…