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TMI Blog1978 (4) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... equipments typewriters, book debts, advances and cash balances of each were valued separately. After adjustment of liabilities, the assessee-company agreed to pay a sum of Rs. 19,59,289.26 as price of the oil mills and the cold storage belonging to Messrs. Kamlapat Motilal. This valuation was done as on April 30, 1958, and the assessee-company agreed to pay this amount by its letter dated September 10, 1958. On the same day, Messrs. Kamlapat Motilal addressed a letter to the assessee agreeing to pay Rs. 12,80,945 for the movable assets minus liabilities of the Bhatni sugar mills owned by the assessee-company. In these letters, both concerns mentioned an arrangement between them for exchange of the sugar mills with the oil mills and the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the Tribunal has referred, for our opinion, the following three questions of law : "1. Whether, on the facts and in the circumstances of the case, the transaction was one whole or it involved two transactions, one pertaining to movable assets and the other pertaining to the immovable property ? 2. Whether the Tribunal was justified in holding that the transaction with regard to movable assets was a sale within the meaning of s. 10(2)(vii) of the I.T. Act, 1922 ? 3. Whether the Tribunal was justified in holding that the transaction pertaining to immovable property was an exchange and not sale within the meaning of s. 10(2)(vii) of the I.T. Act, 1922 ? " The question is whether the transaction was a single one or it could valid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f directors of the assessee-company passed the following resolution : " 1.That the company do exchange the assets and liabilities of the Bhatni factory belonging to the company for the assets and liabilities of the oil mills and cold storage belonging to Messrs. Kamlapat Motilal. 2. That the company do accept a liability of Rs. 6,78,343.50 on account of the reciprocal values of the movable assets of the two concerns, proposed to be exchanged. 3. That the company do accept the exchange of immovables for a net amount of Rs. 54,000 receivable by the company on the execution of the deed of exchange ..........." It will be seen that in respect of immovables the expressed intention was to exchange them on payment of the difference of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuable consideration it may be an exchange ......... but not a sale." Here, so far as the immovable properties are concerned, consideration was the immovable property belonging to the other while in the transaction relating to movables the predominant intention was to get and receive the price. It is evident that the one transaction was of sale while the other was of an exchange. We, therefore, answer the questions referred to as follows : 1. The transactions were two, one pertaining to movables and the other pertaining to immovables. 2. In the affirmative in favour of the assessee and against the department. 3. In the affirmative in favour of the department and against the assessee. In view of the divided success, we ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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