Punjab-Haryana High Court
The Commissioner Of Income Tax vs M/S Southers Bottlers Pvt.Ltd on 19 March, 2024
Author: Sanjeev Prakash Sharma
Bench: Sanjeev Prakash Sharma
Neutral Citation No:=2024:PHHC:039427-DB
1
ITA-10-2001 (O&M)
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
208
2024:PHHC:039427-DB
: CM-2877-CII -2021 &
CM-2885-CII-2021 in ITA-10-2001
Date of Decision:- 19.03.2024
The Commissioner of Income TAx
...Appellant
Vs.
M/s Southern Bottlers Pvt. Ltd.
...Respondents
CORAM:- HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA
HON'BLE MRS.JUSTICE SUDEEPTI SHARMA
Present: Mr.Varun Issar, Jr.Standing Counsel
for the applicant-appellant.
None for the respondent.
SANJEEV PRAKASH SHARMA, J. (Oral)
CM-2877-2021 For the reasons mentioned therein, application is allowed and delay of 04 days in filing the revival application qua the captioned appeal is condoned.
CM-2885/2021 This Court vide order dated 10.02.2020, dismissed the Income Tax Appeal as the appellant was unable to ascertain about the tax effect. However, liberty was granted to the appellant to revive the same if the tax effect is higher than the limit prescribed in the said circular.
The Revenue has filed the revival application alongwith application for condonation of delay on the ground that the tax effect has been found to be in the limit prescribed under Circular 3 of 2018 which as per them, would be Rs.1,37,97,9007/-. The claim is based on calculation in terms of provisions under Section 45A of the Income Tax Act, 1961 and, therefore, the same was to be assessed in terms of Section 10(3) of the Income Tax Act. However, learned counsel fairly concedes that 1 of 2 ::: Downloaded on - 22-03-2024 00:23:41 ::: Neutral Citation No:=2024:PHHC:039427-DB 2 ITA-10-2001 (O&M) subsequently, vide judgment reported as (2005) 2, SCC 584 titled as "Commissioner of Income Tax, Mumbai Vs. D.P.Sandu Bros. Chembur (P) Ltd., the Apex Court has held that tenancy held, is a capital asset and attracts Section 45 of the Income Tax Act and would be assessable, if at all, under Section 14, Item (E). Therefore, in view of incapability of ascertainment of the costs of acquisition of the tenancy for the purpose of computing capital gains under Section 48, capital gains so earned held, not exigible to capital gains tax under Section 45. It is further held in the said circumstances, the said income could not be taxed even as "income from other sources" under Section 10(3) read with Section 56 of the Income Tax Act, 1961.
In view of the Larger Bench Judgment of the Apex Court (supra), we do not find any reason to allow the appellants to revive this application and the same is dismissed.
(SANJEEV PRAKASH SHARMA)
JUDGE
19.03.2024 (SUDEEPTI SHARMA)
sd JUDGE
Whether speaking/reasoned: Yes/No.
Whether reportable: Yes/No.
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