The Commissioner Of Income Tax – Iii, Pune v. Better Value Holdings Private Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.703 OF 2011 The Commissioner of Income Tax – III, Pune..Appellant. Versus Better Value Holdings Private Limited..Respondent. Mr.Vimal Gupta for the appellant.Mr.Mihir Naniwadekar for the respondent. CORAM : J.P. Devadhar & A.A. Sayed, JJ. P.C. : DATE : 8[th] August, 2011. 1.In this appeal, the question of law raised by the Revenue is, whether the Income Tax Appellate Tribunal was justified in holding that the income earned from sale and purchase of shares were liable to be assessed under the head ‘income from capital gains’ and not under the head ‘income from business’. 2.In para-18 of its judgment, the Income Tax Appellate Tribunal has recorded a finding of fact that the transaction of sale of shares of Kirloskar Brothers Limited has been undertaken as a part of assessee’s overall activities of nursing the investments of promoter family in the Kirloskar group of companies and to acquire and exercise control on such companies. Therefore, surplus arising therefrom cannot constitute income assessable under the head ‘ profits and gains of business’. 3.In our view, the decision of the Tribunal is based on finding of fact. No question of law arises from the order of the Income Tax Appellate Tribunal. The appeal is thus dismissed with no order as to costs. (A.A. Sayed, J.) (J.P. Devadhar, J.)