Commissioner Of Income Tax,Kolkata – Ii, Kolkata v. M/S. Prasad And Co. Limited

ITA/87/2010 IN THE HIGH COURT AT CALCUTTASpecial Jurisdiction (Income Tax)ORIGINAL SIDE COMMISSIONER OF INCOME TAX,KOLKATA – II, KOLKATA -Versus- M/S. PRASAD AND CO. LIMITED Appearance:Mr. Tilak Mitra, Adv.. . . for the appellant. Mr. Anurag Bagaria, Adv....for the respondent. BEFORE: The Hon’ble JUSTICE T.S. SIVAGNANAM -And- The Hon’ble JUSTICE SUPRATIM BHATTACHARYA Date : 16[th] September, 2022. The Court : This appeal filed by the revenue underSection 260A of the Income Tax Act, is directed against theorder dated 9[th] October, 2009 passed by the Income TaxAppellate Tribunal, “C” Bench, Kolkata (the Tribunal) in ITANo.1011/Kol/2008 for the assessment year 2005-06. The appeal was admitted on the following substantial question of law: (i)Whether on the facts and in the circumstancesof the case, the Income-tax Appellate Tribunalis correct in holding that the sum of Rs.1,55,95,911/- realised on sale of bonusshares of Jubillant Organosis Ltd. receivedduring the relevant year, was in the nature ofshort term capital gains and not businessincome ?” We have heard Mr. Tilak Mitra, learned standingcounsel for the appellant/revenue and Mr. Anurag Bagaria,learned advocate for the respondent/assessee. From the substantial question of law which has beenadmitted it is seen that the tax effect involved in this appealis much less than the threshold limit fixed by the Circularissued by the CBDT. Therefore, the revenue cannot pursue thisappeal.Accordingly, the appeal (ITA/87/2010) stands disposedof on the ground of low tax effect and the substantial questionof law is left open. (T.S. SIVAGNANAM, J.) (SUPRATIM BHATTACHARYA, J.) S.Das/As.