Kemfin Services Pvt. Ltd. v. The Assistant Commissioner of Income-tax, Circle 11(5), Bengaluru - 2020-LL-0619-21

Citation	2020-LL-0619-21
Appellant Name	Kemfin Services Pvt. Ltd.
Respondent Name	The Assistant Commissioner of Income-tax, Circle 11(5), Bengaluru
Court	HIGH COURT OF KARNATAKA
Relevant Act	Income-tax
Date of Order	19/06/2020
Assessment Year	2007-08
Judgment	View Judgment
Keyword Tags	substantial question of law • business income • sale of shares • capital asset
Bot Summary:	Mr.K.V.Aravind, learned counsel for the revenue. This appeal under Section 260-A of the Income Tax Act, 1961 has been filed by the assessee which was admitted by a Bench of this Court vide order dated 28.08.2012 on the following substantial question of law: Whether on the facts and in the circumstances of the case, the Honourable ITAT was right in law in holding that the income arising on sale of shares held as capital asset after conversion from stock in trade as business income and not as capital gains 3 3. When the matter was taken up today, learned counsel for the parties jointly submitted that the substantial question of law framed by this Court has already been answered by a judgment of this Court in ITA No.149/2011 c/w ITA No.70/2011 dated 11.06.2020. In view of the aforesaid submission and for the reasons assigned in the aforesaid judgment, the substantial question of law framed in this appeal is answered in favour of the assessee and against the revenue.

1 IN HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS 19th DAY OF JUNE 2020 PRESENT HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE M. NAGAPRASANNA I.T.A. NO.162 OF 2012 BETWEEN: M/S. KEMFIN SERVICES PVT.LTD., KEMWELL HOUSE, 11, TUMKUR ROAD, BENGALURU 560 022 (REPRESENTED BY ITS DIRECTOR SRI. S.N. BASANIWAL, AGED ABOUT 54 YEARS, S/O LATE PANNALAL BASANIWAL) APPELLANT (By Sri.SHARATH, ADV. FOR MR.CHYTHANYA K.K, ADV.,) AND: ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 11(5), BENGALURU ... RESPONDENT (By Sri.K.V.ARAVIND, ADV.) --- THIS ITA IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 ARISING OUT OF ORDER DATED 31/01/2012 PASSED IN ITA NO.82/BANG/2011, FOR ASSESSMENT YEAR 2007-08, PRAYING THAT THIS HON BLE COURT MAY BE PLEASED TO: (I) FORUMULATE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN. 2 (II) ALLOW APPEAL AND SET ASIDE ORDER DATED 31/01/2012 PASSED BY ITAT BEARING ITA NO. 82/BANG/2011, IN INTERST OF JUSTICE AND EQUITY. THIS ITA COMING ON FOR FINAL HEARING, THIS DAY, ALOK ARADHE J., DELIVERED FOLLOWING: JUDGMENT Mr.Chythanya K.K., learned counsel for appellant. Mr.K.V.Aravind, learned counsel for revenue. 2. This appeal under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as Act , for short) has been filed by assessee which was admitted by Bench of this Court vide order dated 28.08.2012 on following substantial question of law: (i) Whether on facts and in circumstances of case, Honourable ITAT was right in law in holding that income arising on sale of shares held as capital asset after conversion from stock in trade as business income and not as capital gains? 3 3. When matter was taken up today, learned counsel for parties jointly submitted that substantial question of law framed by this Court has already been answered by judgment of this Court in ITA No.149/2011 c/w ITA No.70/2011 dated 11.06.2020. 4. In view of aforesaid submission and for reasons assigned in aforesaid judgment, substantial question of law framed in this appeal is answered in favour of assessee and against revenue. order passed by Tribunal is quashed. In result, appeal is allowed. Sd/- JUDGE Sd/- JUDGE RV Kemfin Services Pvt. Ltd. v. Assistant Commissioner of Income-tax, Circle 11(5), Bengaluru

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