Karnataka High Court
The Commr Of Income Tax vs M/S Arunananda Textiles Pvt Ltd on 2 March, 2010
Bench: K.L.Manjunath, B.V.Nagarathna
IN 'I.'I"'iE I"IIC}H COURT OI' KARNATAKA AT B/\I\z'GAI,ORI~'I I")A'E'"I*ZI') T1 .118 T111') 2"" DAY OF i\/i.ARCI"~-I. 2010 PR£«:SEN'1' '1'1~»11.«: I--iON"BL1£ MR.JUs'r1CI~: K.L.M.ANJ L1N,A"1'H "
AND '.!_'E--IE3 1"1ON'BL,E MRs.JUs'1'1C;«: B.V.NAGARA'ETE}TN2\'mi INCOME TAX APPEAL No. 115 1 5. "
Between:
.1. The Commissioner 11190-rn<:"'1'éix_ CenE::"2-LE Circle. C.R__£§'~L1£iCiin3g._%" , Ql.l@GI1S Road. 13 e1:1g_§a'1'l'r):'A:3[* .~ ' M
2. The Deputy ()6t1:1{1'1is'éiO'nV§:a' 111(_'.o1'ne Tax?
Cer1*;.:'aE C_Ti~:"c14eC_:;__'-'I '{2_')__ (3 . R . 13VL§%i"1Vd'i~:.{fg_. Qfie. § r: R0 46;"
l321:'1gV;1i()-31'...' ' Appe11£1111's3 (B y S ri . M . V. Sr-2 Em C:h z1 E e:i".* Ad V 0 C a te} M /'re-3 AI"Lv.s_1i'a1;fiV2}.'i1---do{I'exLiles P V1. Ltd. Nb. B .R"(3-é1.d.
IP21}}Aip'aiyam,,'j _E1'c)dt=._ - 33:38.-"'0O8. ...Resp01'1d<=-111 Sri.(3.._"Sa1*anga:'1, S@n:'<>:' Counsel for m'1. ."i:1 ,\/ail i. Adv()(_>21ttt] *5?-'£¢>i==i= This Inc.0me Tax Appeal filed Lmdcr Section 2E$(}z\ of the ixicrolne Tax Act. E961 211'is.-3111;; 01:: 0% 'W...
5. The short qtit-rst'i(m 1.E'1z.tt' arises for m..11' ('.()I1.',-3iC.i1t'.I'&-iti()I"1 in this 2.-1p1.)eaI is:
"'11" the company has received share 7 amou nt from the interading shat1;e_ ' .
hulders. is it :*equired For .-the respondem -- assessee to establish the credit' wortihihessg of h' V depositors." .
6. The question 1*a1ised~..__'m_A this 'ap'v};)e';1'1*~.,.~a{'1'e squ.a1'e1y covered by,severafi°--jiid_g111eht.vs.. ..r:fI' the Supreme Court and aisoh th e:t_jVi;;1§igh'1senVt.'Of this Court: passed in ASK ;;3RpT11A1=j'R"s{';;1f'12;j..vsf.cftivii/11\aIss1oNER OF INCOME '.'1iI?;X:':::ij7J'hé'f€tVi-I1 Ih"is~C0L1r1' folloxvvihg the j ucEg:'1'1e1'1'''t_s '' 01' th 1;;pu1'+__?:'1'j:e Court in the case of coMM1ss16N_Ea V'oFA._"z.1§.'tcoME TAX LOVELY
-v..EXP(3I§1fI'StA'{P] L"FI}.VV__;_f_ep(>rt,ed in (2008) 216 CTR (SC) V't.}.95'§ '~»:«u':ciV_'z:1}'s_t5'v__i1'1 the ease of COMMISSIONER OF STELLER INVESTMENT LTD.
--V1'c';3()1tted"--Vir1"{é001] 251 ITR 263 {SC}. has ruled that "it is-;=__1"1()lV'"E'()1' the assessee 1,0 1)Iz1ee maieriai before _*t.}1I>. 'Assessing C)1'fi(:er in 1'eg.21rd to ('.1"(i'dit .._ 'wo"1*1.11iness of the share hoiders. If the (.'.()1'}1[.)£i11y W