Ita/910/2007 Of The Commissioner Of Income Tax v. Dr K Dinakara Kini

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 26 DAY OF SEPTEMBER 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA No.910/2007 BETWEEN : 1 THE COMMISSIONER OF INCOME TAXC R BUILDINGQUEENS ROAD,BANGALORE 2 THE DEPUTYCOMMISISONER OF INCOME TAXCIRCLE 8-1, C R BUILDINGQUEENS ROADBANGALORE. APPELLANTS ( By Sri. K V ARAVIND, ADV.) AND : Dr.K DINAKARA KININO.239, MAHALAKSHMIPURAMLAYOUT, BANGALORE-560 086. ..RESPONDENT ( By Sri. C R PANDIT, ADV.) I.T.A. Is filed u/S.260-A of I.T.Act 1961 arising out of order dated 18-07-2007 passed in ITA No.584/Bang/2007 passed by the ITAT, Bangalore This ITA coming on for hearing this day, K.SREEDHAR RAO, J, delivered the following: JUDGMENT In view of the decision of this Court in ITA No.2934/2005 (DD 18.7.2011), the questions of law, which are framed as under, are held against the revenue. 1.Whether the Tribunal was correct in holding that the sum of Rs.1.5 crores received by the assessee from M/s.Praxair Carbon Dioxide Pvt. Ltd. towards transfer of certain rights and not carrying on similar business was not liable to tax under the head “Capital gains” despite the amendment to Section 55(1)(b)(1) and section 55(2) as held in its earlier order? 2.Whether the Tribunal was correct in applying its conclusion arrived at in the case of Mr.Sunil Kini by holding that w.e.f. Finance Act of 2002 Section 28(va) of the Act has been amended to bring it to tax under the head bkm. “business income” and therefore the question of bringing the same to tax under the head “capital gains” for the period earlier to the amendment did not arise? Accordingly, the appeal is dismissed. (Sd/-)JUDGE (Sd/-)JUDGE