High Court Karnataka High Court

The Commissioner Of Income Tax vs K R Pradeep Kumar on 6 September, 2010

Karnataka High Court
The Commissioner Of Income Tax vs K R Pradeep Kumar on 6 September, 2010
Author: N.Kumar And H.S.Kempanna
EN THE mm-t COURT OF KARNATAKA A"? BANGALORE'-....'_E~~T.

DATED THES THE 6*" DAY OF SEPTEMBER 2916 "' 

PRESENT

THEHONBLEMR.Nfi§UCE,NgKfiMfiE"EnEEVT"E

AND.

THErmnwsaerwR.JusT3CEfLsfKEMPAmfiAg-,mI

ITA NO.31O éOe:--_

BETWEEN:

1.

_ Bangxa.'%_§0r"e;.

The Commissionerof Inc0m--e.--TVax--,A  ' '
Centratcircie, _ _ _  _.   ~
cTLBundmg,_f, 5", _*.1_ _'-T """
Queens Road; 9'    "  
Bangalore.   

The Depety .C--om:T's*a;3.si'or"1er._<

Central C§'i~'.C§€<.'I,  "  -

C.R.Bua'idEng=,T

Queens_R0ad}"~» "

V"  Appeliants

{By  for E'/E.V. Seshachala, Advocate)

=Tj»{ey Sn M.V.}avaH,Adv.)

TE AND€.T*

 Late Sr}. 'P.a}a'gopéEa Rae,
 LR. K.R,jPradeep Kumar,
4_"No':4,/2_e__ 
._ ".._'V"r»'!.ud3iaV;);:2'za_. Street,
»],_apddavana
-.T"B__ah'gal}0re-S60 OG4.

 Respondent

x/

This ETA is fiied under Section 260–A of LT. Act,f:i961
praying to formulate the substantiai questions of
therein and to aiiow the appeai and set aside the
by the Income Tax Appellate Tribunal, Bc:iI’]QaiOF€””B’€éif’iCi’i”:i:f}’-:1-4″‘
i\Eo.809/Bang/2005 dated 31.10.2006 cozjifirnriiéng ‘t«he’1
Appeilant Commissioner and confirm

Income Tax Officer, Ward-3(1), BanQ_a’iQre. ‘

This ETA is coming up’ for hec3I”‘i’i’i’i:.jV,_:’Oii’I_,A. otnthisyé day, N

KUMAR 3., delivered the foiio”wing. _ ;

2. This:’:,appeai”g;iert_,a’i’ns”‘tot’-the -‘assessment year 1997-98.
The question involved’in””t,hi»s:i”a.ooeai is when partners retire,
when the ycconisiderationiiisVpaid to them representing it as a share

inutheii ass’ets_.s’o,f tiiev partnership firm, whether it amounts to

capitai”a}_a’i’ns. and’_~vi.i.ab.l;’e”for tax ?

In thefcase of very same assessee for the assessment

by a considered order, this Court on 16.8.2010 in

‘ii-jra”ixiogaoa/2oo7 and connected matters has held that the

V’-c:Tr.,i_i4_34’4i:..’snal is justified in hoiding that it was an asset of the

A/.