Karnataka High Court
M/S Davangere Maganur Bassappa And Sons vs Income Tax Officer on 3 December, 2009
Bench: K.L.Manjunath, Aravind Kumar
2 fi$.135éfENGX2GG8§datefi 1§~Q?w2@Q9 , in the interest af justice and equityg , ?his Appeal Gaming fin far kdmisgifihftfiis day; MARJU§&TH J; dfilivared the fQllQFiflg{f:¥'x J3BGME§T Sri.Ar3vir:&, is fi;ireai»'¥,.:es::§;~::m f'§§3;é for the raspandent.
Ewfleard the acgnsai Em: éhe parties.
3. _?$éW;a$$$s$é§ 'fiaa camfi up im thig ap§eai'xL'mhaEiéfigfi§§ : the legalifiy aad aa§:émtne$smLéf 'the fififiéf §a§§afl by aha &$§a$éin§'§§f:a@r whiah fiag baen sanfizad by "éfi§ fl¢fii$$iém&§ far :ficmme'Tax {Appeals} an& f§%[email protected]%§iKmwd by tha Inaama ?ax Aggallate *_flT§:bu§3§; Bangalare Eenah in E§& §§}235§fBaa§f2§fi3 fer tha afifififififiéfit yéar
-~:'§§9~»2sas dt. 2%. Z? 4. zaag, §, The faatg léaéifig ta téis caga are 33 hfiremader:
6%, 3 .
'Eng assessee is a partnership "fi:=.*.:::*:;:%.._{'» an aaseunt of the é:,i.3$Q3.'uta?.en, Erie ass%'fas_"VV»r§;:£"'.j'<§:i*z® firm ara fiistributeé. amang ii2Sv'A :"wv§§afi.;?.{;'%"?.".»lf1&?5§f§§2 Baaed er: the same, aha ésseséirigf aalculated the aap;z1.t.=,":3.__ ga§.";*3§-- §a.§§;~;"§té.;'é.;eé assesseek Tha ae.$$a=r.rs$eé"Vv.f::*.m':;"%*.e2'z:¢¢iEe§j'éihéép, it :3 net liable £9' ::::zy ¢a;g§:;§;aa 3;'«.% gains. Tna Assessing aEV'f:?..::ezfH_V_:§°:a:=,;s __§s;*:j*";e1'¥c?cs;zé.*~«.V:i§V.. frzhe aiaim sf i:.1:§ ¢;'s'£e:~:$:.§;i;az~aa::f:.E :'§~»~§.9A¢'.é§*;,1**2e yrafarrefi befare the fig Inseam fax, the a@z:*a;:::1s§s§;£s:°;i£ar_V'V._ 5:;-if Egmmm Tax éwwalsfi ; cva§;§::~£",:§,.:f2:g5~;d éhze -------- ~'f3123c:3;ng5 af 'aha Assessing ={é}§£';€";L:;a:%§:*";:eg"ara ts magitai. gaging §ayah§.& by 'thé a.$s%e1;s--*sée. 'E213 Cafiaisisaienax mi? Eizcarm 3353;:
{App¢g;3s; axm aalcmlatéd the quafitum cf ,<:ié§:»:?£;a,"; gains paié by the §azftmer$ af the fzlzfm 'fir: aaamizzt sf 'aim éissalutian Qf tfie firm bageé an the materia: prmézzesad 3;? him. gcmexfiinglyf game Efilifif 323$ Eeexé gslvan "EQ tha gggeagaeé figgaiziagt whiah tha as$a;<3$e& filfid a {g/' 4 second a§paa% befare the Inccme fiax Aypellate ?ribunai. ?he Imcoma Tax §@§ellate ?rihuna1 also heifi that tha assegsee is'Eia§;§ :§ gay tha cafiital Qains. in regarfil fi§ '%%¢ a quantificatian wf capitai §§ia}is%¢Cn¢fi:fie§, it has given a clear fiinding that thé"gs$a$$aaL dié not xaise as a gréufid in t§e«%p§§é§ fiem§ Aaaordinglyg it is r@f§éfi%§X_ &g$ifi$t which, thej§£ésefit gppaa; is fi:éa¢ 5; 3m £33 £3 fifié paymfint af cap:tal gains byififie paitgéxfi an aacaufit af éistzibutian af =:hm_g$$ei$ sf tfie firm dfie ta fiigsaiutisfig the L',é§m"§$ d§?éred by the Jufigmefit sf thig Saar:
ifi S§?§R§KAfi V3. ax? {2a§5} 28? E?R page 43%' =§%e§é§a§@; the saié gain? has ta be afigwaxaé 2-against the aagagaee.
fig $a far as the qgzantificafiian sf the fiayitai gains are aanceraefif we hava 313$ aeen thfi gxfiundg fif agyaal §§§ferraé by tha §/ a$$&$$ee befmre the Ezxtzmae *E'ax ?1:3'.1:>urzai. in tha gz°<.'§:2z':§3 mf appeal V. hag net been raised by t3:.e.,__§;ss_¢e5§s"é$9.=;':.. Ififlfiiffi {Sax Apgallate 'E'r3i..b"afi':';a;§_;,T~'§.,r£=.?P%§'&}~9§'>.__éf.: its arégx has clearly ¥::T?:a*;_s§;§§§§%;:"g3.::T:%z:"1& r L' has amt been xaisaci by... viigéfgefi a$$e':-"zsgej The fianmaisaiozaer of Enfisrgw j.{gpg:1§é.is§ in detagfi. has a§nsida::%'e*ci__ '%;7::é°'z%2'5s'e_?.._of'. ..;.5:f'i"i& agaeasee. E§a.*a:*i::§§"V;*:;%%csz*:$f:;.é;e'if:»:égf3g "itijife aa§;$e mf aha asaagséa in fietailvg ' ._'E;;§'3e V '«.'V€.'§";:<:>iz.*:;,'T;-=§$§.cner of Immm 'fax §.é.%aE&§.$§ "x.Z"353»3iV ';-.ai'.;':3§2..§i'e;g>2z: swag reiief ta; tém ':'%:éI::~€;--;'?.*$z.*ag we age fif "the via? that _§:.;1:--'é¢;"'a$'$é'$é'eé* hav§.z:g gatisfiaé with the relief §:'r35:éVted; £.:§é; 33113:: by the Serzmissiarzer cf Enaezm ._'Z?ax igfgfigpfiafig} 5 bmmfi ta raise the qizastian Sf "'L:V'g§;_a.%:g*:i§icat3.§z3 bafmte tifze Iiififififi Em égweliate fzibufiai. But am: having mat zraiséé. $'a.:::f:: a qmestien fiefara the Enamm 'Egg: égfiallata 'fxibamai, it is fiifit Qgazz fax téw asfiagsae ta raigé mick 3; qgizagtiara far ting fizfis tare «Q/%