1996 (4) TMI 25

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..... the Tribunal referred the following question for the opinion of this court under section 256(1) of the Income-tax Act, 1961 : "1. Whether, on the facts and circumstances of the case, the Tribunal was justified in law in holding that a sum of Rs. 5,37,359 or part thereof was assessable to tax under section 41(2) of the Income-tax Act ?" The assessee-company was carrying on the business of opera .....

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..... section 41(2) of the Act for the assessment year 1972-73. On appeal, the Commissioner of Income-tax held that this was a case of compulsory acquisition and hence section 41(2) is clearly applicable. There were appeals both by the assessee and by the Department before the Tribunal. In the assessee's appeal, the first question was whether the sum of Rs. 5,37,359 could be assessed as profit charge .....

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..... the Government and the compensation was determined after taking into account each and every item of the assets belonging to the undertaking and, therefore, there was no slump sale so as not to attract the provisions of section 41(2) of the Act. The Tribunal in the case of Raman and Raman Pvt. Ltd. followed the Special Bench order of the Tribunal in the case of Southern Roadways (P.) Ltd. and rend .....

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