Karnataka High Court
M/S Sharavathy Steel Products Pvt Ltd vs The Income Tax Officer Ward 12(2) on 11 August, 2011
Bench: V.G.Sabhahit, Ravi Malimath
-4- é». The Eeamefi Courssei appearing fer the apgeiiant~a:;§es:=,ee :33; wacing reiiance an we pmvisisns sf Sactém SQIA gubmitted that the §fl€3C}F'£'E€ earned by.._té1§?._ a$se§§ee wauéé mctiasde the §:":a:<:}me egrneé.$V_ ''3'2;5. f-~a_ ' -5 V cemmégséan far the servéceg m:':ée:"@a .pm3"E°:at %:'%*':e~-é:§§3;e'T£»;'§e'<:~*:V hag :"en§a:*ed the serviceg aisace $38 »§SS:§T*:§S§€"=§f'~.;&S §%"Efféfii' said me Q? bugéness am t%:eraf@Ef&,.__V:%§eEe._v$¥e::3 with ting buginegs cf the asse5se€;:"£.%: §.<.;Vfz:%E9ie§;:éfintérsfieci that ever': tizsugh the AQ§p;e _E.E}:::e fig ggineé 'mat Ehe CG?'é'§fT2E$SEQV'_'! 'égsaggee is attrébuiabie to a33e$$ee is 5:9: e§§g%bEg'f§:: SSEA. "E"he:"e§0:*e, he p§eads; sfigéamitted an emsr in E"flESi"Ea§§§'I§ '$3133 :5:E§ag3VQ'§~i§ifi§"Sé'éE§@n SQEA G? {he AC?' Thai the agseggsvagej é§ ér";-':z§:_%"fi§ 50% {he deéuciéans csaémefi. ' 'Sis. _ '*.,'§"E"':é"~.§§jf.3.:?fi*"7§"'i€§ 5:£'2Ei%"%S€§ 5pg:z8as*ér:g far She §'§'::'€f'E§§€ &@?e§:*;:fé' thé'V--§f;":i%'m§neé {§>E'€§€E'. éée C£}%"s§€?.§;':§ $23: Em égggvégéaéég ;e*;'f fimtiasz fiéiii haw §€E3"% E'§§§"éi§*g' %m§&§*§r§Z&§ a:=if:§ gdé::sé--:; mi iifiéi far 32"»; égterfemgzaa {W thég Cimri, Téiat v%i""*"
2§>§§ &'§§(§ €§Q £2 ' $27 "' "
the faais anfif cfrcazmstafices of the cage xsxeaéa dégctase zizat we pmvésésns are rm: apgiiéabie to tise mgtant case, E-fie pieced reiiarece an the judgmeatg in the ::a$:e'~._ '::%_f '~._V Cammigsimer" of Erzmme Tax VS: Siddag3;é§}§3 . Exiracafang Pvé, LEG'. {emrted Er: (I §§5,f'_}"2»§_: E?*§i?7"§':";§S_':5i€a;'}',.V in the iage 0? Camby Efecfriz: Su;:7;:2f;}-3 Injc_3§';;:§:'rE§f_'£"o:f}' Va <:'fammi.§.§:'0ner of ff'?€0:'}"?€' T3%f ":;e @§E %je=:r§V: in. 2; 11%? 84 (SC) and in {$38 ca§V;€3:1u. V:'<of_ T_ vs. Cammisggcsrzer sf fncgmey "'--:'rfa':'f(2:2§z39) 3;? H12 228 am pieafig my' §:£'i--:§f":'%és".ag;%;?'E §. Haa_:.'§§_ C£??f.L:h;_.$e:+i§, 1' V ?, '""§'§"%eT.é::;t£"'Eé:%%i%é?2§*.r;a-:*§:€ «Eé"i£'€é canaiuafian thai: {he atéaém r:sadé_'b'y._:%*'u3. a1$'§'&;>.S;55<'£3éTA;:»s"é;ier §&ECt§{')f'& 833% iagénat ha aéiswefi. _TEzat:%he*asgssegsaefias eamefi tézg aamméaaéen 53 & :_v''''a¥';"«*2,_'a§é;_j:*'':i$: $:.;§@§y'va:@-rijaérz gmfig am ahig fig mt the §'r:':€%a;%t*{g"~T;::'§'v--..'tfiéqéfigfisaéa Efifiz§3i:r%a% unfiariakéag, Trhe ' msmegg sf tE'2'%:%'i._3é$a$$§e £3 the mamfgciare am its $U@p§'~g "~ _ §'§_V?'i§kSflf'§~§§'é$ §E"E§ Qijwireg, 31% Ef'%€ifi$§"{§E in ssiégggie E3 .,~»-» § s ..-
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§ ' «< Wye eseessee ctaenot mder any eetumstanees be regerfied ea the eesmeee activity ef tee eeeeseeek Hence, the se§:;3""'--.T gfeegment E3 of me aveéi te the esseseee.
19. Tee expreesien "erefit er geie a:3erixie_<f~V>fsi.§3fm, .
H business ef an értéestréei eeeerfiekieg ettreetee ie the case of the eeeee-gee. The <:ee»":'éV'%:;e}s'_&.en earned by the eeeeeeee eemeet be 'fieefit er gain free': any eusieese aegg;ggéges%§%ae;~:amgk?: It is net the besieeee ef 'ewe its eem Cemreiseéene é :2.' géhei 'air-eiereeteeeee ef ihe cage; we Kfieit the erder ef ewe T:*§eeee::{: Ee we e§*e ef the ceeeideyee view ihet K/:¢,<.§,.e'i,»»? ei' eéreumsiences ef the ereeeet Ceeeflthe.' ?.:;iAAbV'u%§eE .eie«e..§ue%ifEee in heéeéng ijhei the $53é333é"%:.§ EE?é%3? €'7?t§i§€€3vV"§e% eeeeetéee eneee Seetéee 893%. e? v{%fe~r§eeef'ee~n§Ey; bath iee eeeeiéeee ef iex-=2; ere te Vbe eeexe'e__reeV_»Eé§ feseeer ef the reeenee, wéiijy ee%;._' eteee..__ j § : . 33'? $% §%% '}'«l *-
Q, We $3 mi: See any arm: either or:
amiécatéén ar Entgmretaiéan an the facts of me {;3.s§é'." _.5g§%.j -1- V the Eewer aazihcyitieg Ewavé heié agaégjst §E"?€""i«'52§§:C:}.§'4S:'=;1.'?:;@"'_ finder {base cércumgtafgcesg we age fi§AV:»:E::EA:@I-€f}.{%VE$§'{i.:§,$';'%fi.-#§'€v§%E:\,_'. that we apgeai hag ig faéét Far :»E*se2..__af<::ré:";_a'%'I{§ rea:s'€:éi3§:2...§he_.l s:.:£:»s':an€:§a§ cguestéms cf Eaw aré a:z§in;.g're.d En 'fies:-\.;;<ju'r of? me revezéue ares agairfit the ass-eésael ?s'$"*__ V