2014 (1) TMI 87

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..... of Nutrine Biscuits Ltd., that was manufacturing biscuits under the name "Nutrine Biscuits". The Nutrine Group was in the business of manufacturing mainly confectionery items and biscuits. The confectionery items were manufactured by Nutrine Confectionery Ltd., and biscuits were manufactured by Nutrine Biscuits Ltd. The marketing of all the products were carried on by the assessee company. M/s. Sara Lee Bakery India (P) Ltd., a concern from Chennai was interested to take over the entire business of manufacture of confectionery items and biscuits along with all the marketing facilities of the manufacturing company and the assessee company and with this view in mind they entered into agreements dated 18.03.1998 with Nutrine Confectionery Ltd. .....

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..... uction of Section 50B with effect from 01.04.2000 which will be relevant for the assessment period 2000-01, the consideration received in slump sale was not liable to tax and therefore, he allowed the appeal and set-aside the order of the Assessing Authority. Aggrieved by the same, the Revenue preferred an appeal in the Tribunal. The Tribunal upheld the order of the Appellate Authority and declined to interfere. It is against the said order, the Revenue has preferred this appeal. 4. The substantial question of law which arises for consideration in this appeal is as under:    "Whether the Appellate Authorities were correct in holding that the sale consideration of Rs.23.05 crores (less Rs.1 crore towards goodwill) received from M .....

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..... nd its components. Plant, machinery and dead stock are individual items of an Undertaking. A Business Undertaking can consists of not only tangible items but also intangible items like, goodwill, man power, tenancy rights and value of banking licence. However, the cost of such items (intangibles) is not determinable. In the case of CIT v. B.C. Srinivasa Setty reported in (1981) 128 ITR 294, this Court held that Section 45 charges the profits or gains arising from the transfer of a capital asset to income-tax. In other words, it charges surplus which arises on the transfer of a capital asset in terms of appreciation of capital value of that asset. In the said judgment, this Court held that the "asset" must be one which falls within the conte .....

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