The Commissioner Of Income Tax v. M/S Punjab State Indl. Development Corporation

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A. No.649 of 2005 & other connected case beingI.T.A. No.91 of 2006Date of decision: 8.12.2010 The Commissioner of Income Tax -----Appellant. Vs. M/s Punjab State Indl. Development Corporation. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOELHON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Ms. Urvashi Dhugga, Standing Counselfor the appellant.for the appellant. --- ADARSH KUMAR GOEL, J. This order will dispose of I.T.A. Nos.649 of 2005 andI.T.A. No.91 of 2006, as common questions of law are involved inboth the appeals. I.T.A. No.649 of 2005 has been preferred by therevenue under Section 260-A of the Income Tax Act, 1961 (forshort, “the Act”) against the order of the Income Tax AppellateTribunal, Chandigarh in I.T.A. No.599/Chd./2003 for theassessment year 1998-99 raising following questions of law:- i)“Whether on the facts and circumstances of thecase, the Hon’ble ITAT is justified in holding thatthe sale of investments by the assessee was acase, the Hon’ble ITAT is justified in holding thatthe sale of investments by the assessee was a Capital Gain and not Profit and Gains frombusiness, whereas the main business of theassessee is to make investments and earn profitfrom the same?” ii)“Whether in the facts and circumstances of thecase, the Hon’ble ITAT is justified in holding thatthe Project Survey Expenses should be treatedas Revenue Expenditure, whereas the ProjectSurvey Expenses are in the nature of CapitalExpenditure?” Learned counsel for the revenue fairly states that boththe questions have been earlier decided by this Court on30.9.2010 in the case of the assessee itself being I.T.R. No.20 of2000 The Punjab State Industrial Development CorporationLtd., Chandigarhv. CIT. In view of above, the appeals are dismissed. A photocopy of this order be placed on the file of other connected case. (ADARSH KUMAR GOEL) JUDGE December 08, 2010ashwani (AJAY KUMAR MITTAL) JUDGE