Itta/725/2014 Of Commissioner Of Income Tax Ii v. M/S Heritage Foods (India) Ltd

IN THE HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 725 of 2014 Date: 30.12.2014 Between: Commissioner of Income Tax-II,Hyderabad. … Appellant AndM/s. Heritage Food (India) Limited,Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 725 of 2014 JUDGMENT:(Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred against the judgment andorder of the learned Tribunal dated 13.11.2013 in relation to theassessment year 2007-08. The assessee lost before both the authorities below. Hence,appeal was taken to the learned Tribunal on the question of taxability ofthe capital gains in relation to the transaction of an agreement for sale. Both the authorities below found in favour of the Revenue. However, thelearned Tribunal upset it on appreciating the admitted fact that there hasnot been any completion of transaction in relation to the agreement ofsale of property, meaning thereby, transfer of interest within thedefinition of Section 2(47) of the Income Tax Act, 1961 did not take placein relevant previous year, and found that this transaction could becompleted in subsequent year. Consequently, the income by way ofcapital gains will accrue in the subsequent year also. In view of the aforesaid factual findings the learned Tribunal hasconcluded rightly to grant the benefit as asked for by the assessee. Wethink the learned Tribunal has correctly directed the Assessing Officer towork out the solution given by the assessee to deal with the assessmentyear 2008-09. We do not find any reason to interfere with the impugnedorder of the learned Tribunal. The appeal is accordingly dismissed. Pending miscellaneous petitions, if any, shall also stand dismissed. No costs. ___________________ K.J. SENGUPTA, CJ Date: 30.12.2014 ES ___________________ SANJAY KUMAR, J