DY. Commissioner of Income Tax, Central Circle-3( 4) vs. Samagra Wealthmax Private Limited

Parties Involved

Facts Summary

Samagra Wealthmax Private Limited, a real estate company, was assessed for the year 2018-19. The Assessing Officer added Rs. 149.29 crores to the assessee's income, considering it as income from other sources or business income. The assessee appealed against this addition, arguing that the reserve was capital in nature and not taxable. The Commissioner of Income Tax (Appeals) deleted the addition, and the Assessing Officer appealed to the Income Tax Appellate Tribunal. The Tribunal upheld the Commissioner's decision, finding that the reserve was capital in nature and not taxable under the Income Tax Act.…

Legal Issues

• 1. Whether the capital reserve of Rs. 149.29 crores generated on account of amalgamation is taxable under section 28(iv) of the Act.
• 2. Whether the capital reserve credited in the balance sheet of the assessee company is capital in nature.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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