Vania Silk Mills (P.) Ltd. v. CIT

191 ITR 647Supreme Court of India1991#3080 most cited

What is Vania Silk Mills (P.) Ltd. v. CIT authority for?

Extinguishment of rights in a capital asset includes transfer and attracts capital gains computation provisions. Demolition and conversion of a building into scrap constitutes a form of transfer.

38

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2009 to 2026.

Also referred to as

Vania Silk Mills v. CIT · Section 2(47)(ii) · extinguishment of rights · capital asset transfer · Section 48 · demolition of building · scrap value

Sections most often in play

Section 143(3)Section 2(47)Section 35DSection 40(a)(i)Section 80-OSection 14ASection 28(iiid)Section 28(iiie)
Read the full judgment

Issues it is cited on

extinguishment of rightssection 45(2)section 269uasection 2(47)record datesection 35dsection 10(2)section 53asection 80hinterest on refundsection 53section 2(47)(v)

Judgments citing Vania Silk Mills (P.) Ltd. v. CIT

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

…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 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 assessee to obtain a share in BLB Ltd. It is not a case where the asset itself has been extinguished or dest…

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

…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 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 assessee to obtain a share in BLB Ltd. It is not a case where the asset itself has been extinguished or dest…

DCIT, New Delhi vs. M/S. Acquire Services Pvt. Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 3192/DEL/2015[2011-12]Status: DisposedITAT Delhi11 Nov 2021AY 2011-12

Bench: Sh. Anil Chaturvedi & Sh. Sanjay Garg(Through Video Conferencing) Dcit Vs. M/S. Acquire Services Pvt. Circle – 1(2), Ltd., New Delhi Ground Floor, Central Wing, 124, Janpath Thapar House, Janpath Pan No. Aaacg 3351 K New Delhi-110 001 (Appellant) (Respondent) Assessee By Shri Piyush Kaushik, Adv. Revenue By Shri Nidhi Srivastava, Cit-D.R. Date Of Hearing: 06.10.2021 Date Of Pronouncement: 11.11.2021 Order Per Anil Chaturvedi, Am: This Appeal Filed By The Revenue Is Directed Against The Order Dated 27.01.2015 Of The Commissioner Of Income Tax (Appeals) – 4, New Delhi Relating To Assessment Year 2011-12. 2. The Relevant Facts As Culled From The Material On Records Are As Under :

Section 115JSection 143(3)Section 14ASection 14A(2)

…as of the view that on redemption of the preference shares, preference shares itself stood extinguished by the redemption and it could not be treated as transfer. He thereafter relying on the decision of Hon’ble Apex Court in the case of Vania Silk Mills Ltd. 191 ITR 647 concluded that the premium received on redemption on preference share was liable to be taxed as “income from other sources”. He therefore considered the redemption premium received on redemption of preference shares aggregating to Rs.20,65,00,000/- as “income from other sources”. 12. Aggrieved by the order of CIT(A), assessee carried the matter…

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)

…. We agree with the interpretation given by 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 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 dest…

Continental Construction Ltd., New Delhi vs. ACIT, New Delhi

Appeal is dismissed

ITA 4710/DEL/2010[1995-96]Status: DisposedITAT Delhi23 Sept 2020AY 1995-96

Bench: Ms Suchitra Kamble & Shri P. Maharishi & Vs Continental Construction Acit, Ltd, 28, Nehru Place, Circle – 3(1), New Delhi – 110019. Room No.390, C.R. Building, (Pan: Aaacc 2309 R) Indraprastha Estate, New Delhi (Appellant) (Respondent) & Vs Acit, Continental Construction Ltd, Circle – 3(1), 28, Nehru Place, New Delhi – 110019. Room No.390, C.R. (Pan: Aaacc 2309 R) Building, Indraprastha Estate, New Delhi (Appellant) (Respondent) Appellant By Shri Subodh Gupta, Fca Respondent By Ms. Nidhi Srivastava, Cit-D.R. Date Of Hearing 14.08.2020 Date Of Pronouncement 23.09.2020

…amount to Transfer. a) There can be no ‘transfer’ effected when asset stands destroyed either by fire or by sinking in the sea as in the present case. – C. Leo Machode vs. CIT (1988) 172 ITR 744 (Mad.) b) approved in Vania Silk Mills (P) Ltd. vs. CIT (1991) 191 ITR 647 (SC); c) CIT vs. Hade Navigation (P) Ltd. (1999) 239 ITR 726 (Bom); d) Merybong & Kyel Industries Ltd. vs. CIT (1997) 224 ITR 589 (SC) e) For the transaction to amount to transfer within the meaning of Section 2(47) minimum requirements are that there has to be agreement ITA No.4710-Del-2010 between parties, signed by parties, it should be in…

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

…include 'the extinguishment of any rights' in a capital asset. 12. In this regard, our attention was drawn by the learned counsel for the assessees to the decision of a Bench of two learned judges of this Court in Vania Silk Mills (P.) Ltd. v. CIT [1991] 191 ITR 647. This was a case in which the appellant-company carried on the business of manufacture and sale of art-silk cloth. It purchased during the year 1957 machinery and gave it on hire to Jasmine Mills at an annual rent. Jasmine Mills, as bailee of the machinery, insured it against fire along with its own machinery. The insurance policy contained…

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

…include 'the extinguishment of any rights' in a capital asset. 12. In this regard, our attention was drawn by the learned counsel for the assessees to the decision of a Bench of two learned judges of this Court in Vania Silk Mills (P.) Ltd. v. CIT [1991] 191 ITR 647. This was a case in which the appellant-company carried on the business of manufacture and sale of art-silk cloth. It purchased during the year 1957 machinery and gave it on hire to Jasmine Mills at an annual rent. Jasmine Mills, as bailee of the machinery, insured it against fire along with its own machinery. The insurance policy contained…

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

Appeals are allowed

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

…include 'the extinguishment of any rights' in a capital asset. 12. In this regard, our attention was drawn by the learned counsel for the assessees to the decision of a Bench of two learned judges of this Court in Vania Silk Mills (P.) Ltd. v. CIT [1991] 191 ITR 647. This was a case in which the appellant-company carried on the business of manufacture and sale of art-silk cloth. It purchased during the year 1957 machinery and gave it on hire to Jasmine Mills at an annual rent. Jasmine Mills, as bailee of the machinery, insured it against fire along with its own machinery. The insurance policy contained…

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

…include 'the extinguishment of any rights' in a capital asset. 12. In this regard, our attention was drawn by the learned counsel for the assessees to the decision of a Bench of two learned judges of this Court in Vania Silk Mills (P.) Ltd. v. CIT [1991] 191 ITR 647. This was a case in which the appellant-company carried on the business of manufacture and sale of art-silk cloth. It purchased during the year 1957 machinery and gave it on hire to Jasmine Mills at an annual rent. Jasmine Mills, as bailee of the machinery, insured it against fire along with its own machinery. The insurance policy contained…

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

Appeals are allowed

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

…include 'the extinguishment of any rights' in a capital asset. 12. In this regard, our attention was drawn by the learned counsel for the assessees to the decision of a Bench of two learned judges of this Court in Vania Silk Mills (P.) Ltd. v. CIT [1991] 191 ITR 647. This was a case in which the appellant-company carried on the business of manufacture and sale of art-silk cloth. It purchased during the year 1957 machinery and gave it on hire to Jasmine Mills at an annual rent. Jasmine Mills, as bailee of the machinery, insured it against fire along with its own machinery. The insurance policy contained…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment year : 2010-11 The Dy. Commissioner of Income-tax, Vs. Shri Narayan Mandyam Veerabhudhi, No.78, 1st Floor, 5th Cross, Maruthi Circle-6(2)(1), Layout, 1st Block 3rd Stage, Bengaluru. Basaveshwaranagar, Bengaluru-560 079. PAN – AANPN 8750 F APPELLANT RESPONDENT Revenue by : Shri Manjeet Singh, Addl. CIT (DR Assessee by : Shri V Srinivasan, Advocate Date of hearing : 16.01.2020 Date of Pronouncement : .01.2020 O R D E R Per B.R Baskaran, Accountant Member :…

Sh. Dharam Pal Aggarwal, Ludhiana vs. ACIT, Ludhiana

In the result, appeal of the Assessee is partly allowed for statistical purposes

ITA 91/CHANDI/2019[2013-14]Status: DisposedITAT Chandigarh26 Aug 2019AY 2013-14
For Appellant: Shri Ashwani Kumar, CAFor Respondent: Smt. Chandrakanta, Sr. DR
Section 143(1)Section 250(6)Section 57

…he A.O. under section 57 of the Act was upheld. Reliance was placed on the following case laws: • Smt. Padmawati Jaikrishna Vs. Addl. CIT 166 ITR 176 (SC) • Mrs. Arundhati Balkrishna Vs. CIT, Ahmedabad. 177 ITR 275 (SC) • Vijay Laxmi Sugar Mills Ltd. Vs. CIT 191 ITR 647 (SC) • Karnataka Forest Plantations Corpn. Ltd. 156 ITR 275 (Karnataka HC) • CIT Vs. Rajendra Prasad Moody [1978] 115 ITR 519 (SC) • Smt. Virmati Ramakrishan Vs. CIT 131ITR 659 (Guj. HC) 8. Now the assessee is in appeal. 9. Ld. Counsel for the Assessee reiterated the submissions made before the authorities below and further submitted that the s…

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)

…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 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 assessee to obtain a share in BLB Ltd. it is not a case where the asset itself has been extinguished or des…

M/S Jupiter Capital Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-11(5), Bangalore

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

ITA 445/BANG/2018[2014-15]Status: DisposedITAT Bangalore29 Nov 2018AY 2014-15

Bench: Shri Sunil Kumar Yadav & Shri Arun Kumar Garodiaassessment Year : 2014-15

For Appellant: Shri S. Parthasarathi, AdvocateFor Respondent: Shri D. Sudhakara Rao, CIT (DR)
Section 2(47)

…other 236 ITR 327 (SC) Anarkali Sarabhai v CIT 224 ITR 422 Shishir Kumar R Mehta v CIT 154 CTR 70 We also draw your attention to the decision of the Hon'ble Supreme Court in the case of CIT v Grace Collis & others 248 ITR 323 and Vania Silk Mills P Ltd v CIT 191 ITR 647. The Hon'ble bench has observed that the definition of transfer clearly contemplates extinguishment of rights in a capital asset distinct and independent of such extinguishment consequent upon transfer thereof The court further observed that the expression "extinguishment of any right there in" can be extended to mean extinguishment of right inde…

Dilip Manhar Parekh, Mumbai vs. DCIT 21(3), Mumbai

In the result, the appeal filed by the assessee in ITA N0

ITA 6169/MUM/2013[2007-08]Status: DisposedITAT Mumbai15 Apr 2016AY 2007-08

Bench: Shri Amit Shukla & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 6169/Mum/2013 ("नधा"रण वष" / Assessment Year : 2007-08) Shri Dilip Manhar Parekh, The Dy. Commissioner Of बनाम/ National Plastic, Income Tax –21(3), V. National House, Mumbai. Opp Ansa A Bldg., Saki Vihar Road, Chandivali, Mumbai – 400 072. "थायी लेखा सं./Pan : Affp4206B (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri Kailash Gaikwad(D.R.)
Section 143(3)Section 147Section 148Section 54FSection 54F(3)

…er of the Tribunal,Mumbai in the case of Smt. Chhaya B. Parekh in ITA No. 4954/Mum/2010 dated 16.5.2012. The Tribunal vide its order in ITA No. 6596/Mum/2011 had observed that the judgment of Hon’ble Apex Court in the case of Vania Silk Mills (P) Ltd. , (1991)191 ITR 647(SC) was overruled by the Three Member Bench of Hon’ble Apex Court in the case ITA 6169/Mum/2013 7 of Mrs. Grace Collis and Others, (2001)248 ITR 323(SC) , whereas in the case of the co-owner Mrs. Chhaya B. Parekh , the Tribunal had followed the decision in the case of Vania Silk Mills (P) Ltd. wherein it was held that the extinguishment of rig…

Commissioner of Income Tax vs. Shri Chand Ratan Bagri

The appeal is dismissed

ITA - 31 / 2010HC Delhi20 Jan 2010
For Appellant: Ms P.L. Bansal with Ms Anshul SharmaFor Respondent: Mr Salil Aggarwal with Mr Prakash Kumar
Section 2(47)Section 45

…s. She submitted that the extinguishment of the right must be in relation to the transfer of a capital asset and for this preposition she placed reliance on the Supreme Court decision in the case of Vania Silk Mills P. Ltd. vs. Commissioner of Income Tax: 191 ITR 647. In the said decision the Supreme Court observed that: “Hence the expression “extinguishment of any rights therein” will have to be confined to the extinguishment of rights on account of transfer and cannot be extended to mean any extinguishment of right independent of or otherwise than on account of transfer.” 7. Secondly,…

Commissioner of Income Tax vs. Shri Chand Ratan Bagri

The appeal is dismissed

ITA/31/2010HC Delhi20 Jan 2010
For Appellant: Ms P.L. Bansal with Ms Anshul SharmaFor Respondent: Mr Salil Aggarwal with Mr Prakash Kumar
Section 2(47)Section 45

…s. She submitted that the extinguishment of the right must be in relation to the transfer of a capital asset and for this preposition she placed reliance on the Supreme Court decision in the case of Vania Silk Mills P. Ltd. vs. Commissioner of Income Tax: 191 ITR 647. In the said decision the Supreme Court observed that: “Hence the expression “extinguishment of any rights therein” will have to be confined to the extinguishment of rights on account of transfer and cannot be extended to mean any extinguishment of right independent of or otherwise than on account of transfer.” 7. Secondly,…

The Commissioner of Income Tax-III vs. Sportking India Limited

ITA/1232/2008HC Delhi19 Aug 2009
Section 143(3)Section 260Section 80Section 80I

…ITA-1232/2008 Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA No. 1232/2008 Reserved on : July 15, 2009 Date of decision : August 19, 2009 THE COMMISSIONER OF INCOME TAX-III ...Appellant. Through: Mr. Sanjeev Sabharwal, Mr. Mohan Prasad Gupta, Mr. Arvind Kumar Verma, Advocates VERSUS SPORTKING INDIA LIMITED ....Respondent Through: Mr. Kaanan Kapoor, Advocate CORAM: HON’BLE MR. JUSTICE A.K.SIKRI HON’BLE MR. JUSTICE VALMIKI J.MEHTA 1. Whether the Reporters of local paper…