The Commissioner Of Income Tax vs M/S Southers Bottlers Pvt.Ltd
2024 Latest Caselaw 6236 P&H

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
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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

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Neutral Citation No:=2024:PHHC:039427-DB

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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