2023 (1) TMI 76 - SCH - Income Tax

Benefit of Vivad Se Vishwas Scheme - petitioner has filed application filed u/s 154 of the Income Tax Act, 1961 for rectification of some errors, which is partly allowed - HELD THAT - Petitioner has filed application filed u/s 154 for rectification of some errors, which is partly allowed. The petitioner has filed another application which is pending. We take the statement on record, the special leave petition insofar, which relates to the year 2006-2007 is dismissed as withdrawn. We clarify that we have not commented on the merit of the computation of tax made under the aforesaid scheme or on the grievance or remedy, which would be available to the petitioner. Income/capital gain earned on sale of shares - LTCG or STCG - AY 2010-2011 - HELD THAT - We are inclined to grant leave in respect of income/capital gain earned on sale of shares of M/s J.K. Investo Trade Ltd., M/s Mujnal Showa Ltd. and Samtel Colours Ltd. The parties are given liberty to file additional documents in respect of the said shares. Gain on sale on shares - LTCG OR STCG - HELD THAT - No good ground and reason to interfere with the impugned order passed by the High Court 2015 (7) TMI 813 - KERALA HIGH COURT affirming the decision passed of the Income Tax Appellate Tribunal as the period of holding of the shares sold in the present case was less than one year. We have also taken into account the frequency of transactions.

Summary

Issues Involved:
1. Assessment Year 2006-2007 - Vivad Se Vishwas Scheme benefit and rectification of errors.
2. Assessment Year 2008-2009 - Grant of leave regarding income/capital gain from sale of shares.
3. Assessment Year 2010-2011 - Dismissal of special leave petition regarding shares holding period and transaction frequency.

Analysis:

Assessment Year 2006-2007:
The petitioner availed benefits under the Vivad Se Vishwas Scheme for the assessment year 2006-2007 and obtained a certificate under the scheme. An application under Section 154 of the Income Tax Act, 1961 was filed for rectification of errors, partially allowed. Another pending application was mentioned. The special leave petition related to this year was dismissed as withdrawn, explicitly stating no commentary on the tax computation or available remedies.

Assessment Year 2008-2009:
In this assessment year, the court was inclined to grant leave concerning the income/capital gain derived from the sale of shares of specific companies. The parties were given the liberty to submit additional documents related to these shares, indicating a detailed examination of the transactions involving these shares.

Assessment Year 2010-2011:
The court declined to interfere with the High Court's order affirming the decision of the Income Tax Appellate Tribunal for this assessment year. The dismissal was based on the shares' holding period being less than one year and considering the frequency of transactions. The special leave petition was dismissed, and any pending applications were directed to be disposed of accordingly.

This judgment reflects a comprehensive review of various assessment years, addressing issues related to tax schemes, share transactions, and legal remedies available to the petitioner. The court's decisions were specific to each assessment year, considering the facts and circumstances presented before them.