Ita/51/2014 Commissioner Of Income Tax, Kolkata – Iii, Kolkata v. M/S Kyal Developers Pvt. Ltd

OD–6 IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION (INCOME TAX)ORIGINAL SIDE ITA/51/2014COMMISSIONER OF INCOME TAX, KOLKATA – III, KOLKATAVS.M/S KYAL DEVELOPERS PVT. LTD. BEFORE :THE HON’BLE JUSTICE T.S. SIVAGNANAMAndTHE HON’BLE JUSTICE HIRANMAY BHATTACHARYYADate : 1[st] March, 2023 Appearance :Mr. Soumen Bhattacharjee, Adv.…for appellant The Court : - This appeal has been filed by the revenue under Section 260A ofthe Income Tax Act, 1961 (the Act) is directed against the order dated 19.12.2013passed by the Learned Income Tax Appellate Tribunal “A” Bench, Kolkata in I.T.A. No.627/Kol/2012 relating to the Assessment Year 2008-2009. The appeal was admitted on 6.8.2014 on the following substantial questions oflaw :- i)Whether the Tribunal erred in law in ascertaining true meaning andpurport of section 28(iv) of the said Act that the word ‘business’ wouldinclude income accrued by reason of amalgamation inasmuch as the blockof assets that the amalgamated assessee company received is tangible innature and the enhanced fiture of Capital Reserve would boost the imageand goodwill of the assessee to capitalize the same while carrying onbusiness? ii)Whether on the facts and circumstances of the instant case, the learnedTribunal was not justified in not considering that the Capital Reserve of Rs.49,53,138/- as a benefit derived from business income accrued byreason of amalgamation by merger of accounts of the amalgamatedcompanies with the assessee, being the amalgamating company ? We have heard Mr. Soumen Bhattacharjee, learned standing Counsel for theappellant. As could be seen from the order passed by the Commissioner of Income Tax,Appeals VIII dated 16.1.2012, the tax effect involved in this appeal is Rs.17,16,166/-which is much lesser than the threshold limit of Rs1 crore. Therefore, the revenuecannot pursue this appeal. Accordingly, the appeal stands disposed of on the ground of low tax effect and thesubstantial questions of law are left open. (T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.)