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TMI Blog2021 (11) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... r apart from the assets which were sold and transferred, the said chemical unit had several other assets which were never sold nor transferred to the purchaser - Tribunal took note of the crucial fact that none of the liabilities were transferred to the purchaser and the same continued to be a liability of the assessee and to be discharged and were discharged by the assessee. Tribunal in our view, rightly held that the sale cannot be regarded as a slump sale. The Tribunal took note of the decision of this Court in the case of Kwality Ice Cream (India) Ltd. [ 2011 (1) TMI 905 - CALCUTTA HIGH COURT] in which it was held that though the sale of the undertaking was for a lump sum consideration, Section 50 of the Act in respect of depreciabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition of ₹ 31,13,58,000/- made by the assessing officer under section 50B read with section 2(42C) and explanation 1 to section 2(19AA) of the Income Tax Act solely relying on the submissions made by the assessee and ignoring the facts brought on record by the assessing officer as well as the detailed observation made by the Commissioner of Income Tax (Appeals)? 3. Whether on the facts and in the circumstances of the case, the Learned Tribunal erred in treating the sale of the chemical unit of the assessee company as itemised sale without considering the case laws relied upon by the revenue in the case of CIT Versus Narkeshari Prakashan Ltd., reported in 196 ITR 438 and in the case of Accelerated Freeze Drying Co. Ltd. reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by such order the assessee preferred appeal before the Commissioner of Income Tax (Appeals)-VI, Kolkata [CIT(A)]. It was contended that the finding of the assessing officer that the sale was a slump sale was wholly unjustified since the sale was itemised sale and cannot be treated as a slump sale within the meaning of Section 2(42C) of the Act. The assessee referred to the documents and the annexures to the documents whereunder the sale took place to justify their case. Several decisions were relied on. The CIT(A) by order dated 3rd December, 2012 did not agree with the assessee and confirmed the finding of the assessing officer and held the sale to be slump sale. Aggrieved by such order, the assessee preferred appeal before the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a going concern in toto but only assets of the unit was sold and transferred to the purchaser on a pre-determined and agreed price for each type of assets being sold and transferred and the consideration fixed for all the assets were not in lump sum. After noting the factual position, the Tribunal has taken note of Section 2(42C) and held that the assessee entered into a memorandum dated 25th October, 2007 followed by an addendum to the memorandum for sale of some of the assets of the chemical unit at a pre-determined sale price for selling some of the assets belonging to the chemical unit at Haldia. Furthermore, the Tribunal found from the memorandum as well as the addendum that the individual assets were determined and fixed at a pre-det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the decision of the Hon'ble Supreme Court reported in AIR 1976 SC 163 (Afsar Shaikh and Another Versus Soleman Bibi and Others). This decision has been pressed into service for the proposition regarding the scope of the power of the High Court under Section 100 of the CPC and as to how the High Court shall proceed while exercising such power. The learned Standing Counsel would submit that if the Tribunal has not determined the issue of fact properly or it has determined the issue wrongly by reason of any omission or error or defect then this Court in an appeal under Section 260A of the Act would be entitled to interfere. In the preceding paragraphs we have pointed out the factual position which has been taken note by the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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