SUPREME COURT OF INDIA
G. S. Homes & Hotels (P.) Ltd.#
Deputy Commissioner of Income-tax
CIVIL APPEAL NOS. 7379-7380 OF 2016
AUGUST 9, 2016
Preetesh Kapur and Ms. Radha Rangaswamy, Advs. for the Petitioner. Ranjit Kumar, Solicitor General, Ms. Anita Sahani, S. Wasim A. Qadri, Ms. Anita Sahni and Mrs. Anil Katiyar, Advs. for the Respondent.
1. Leave granted.
2. After hearing the leaned counsels for the parties and perusing the relevant material, we modify the order of the High Court by holding that the amount (Rs.45,84,000/-) on account of share capital received from the various share-holders ought not to have been treated as business income. The High Court, therefore, in our considered view, fell into error in reversing the order of the Tribunal on the aforesaid issue. Insofar as the issue of short term capital gains with respect to property T1 and T2 and maintenance deposit is concerned, we do not find any infirmity in the order of the High Court so as to require any modification.
3. The appeals are disposed of as partly allowed as indicated above.
Note #Arising out of order of Karnataka High Court in Dy. CIT v. G.S. Homes & Hotels (P.) Ltd. [IT Appeal No. 16/2003 and ITA CR No. 1/2009, dated 16-9-2011].