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2014 (10) TMI 908 - MADRAS HIGH COURTClaim of exemption - Sale of business as a whole - Explanation III to sub section 41 of Section 2 of the TNVAT Act 2006 states that, ' any amount realized by a dealer by way of sale of his business as a whole, shall not be included in the turnover.' In the impugned order, the Assessing Officer held that the condition stipulated under Section 2(41) of the Act excluding the turn over from the tax liability is that the amount should have been realized by the dealer by way of sale of his business 'as a whole' and that the petitioner/ assessee have sold only a division of their business (Windmill division) and when they have not sold their business as a whole, the receipt on account of the sale of one of the division of their business cannot be excluded from tax liability. Held that:- Similar issue was decided in the case of Eicher Motors Limited Vs. The State of Tamil Nadu [2013 (12) TMI 629 - MADRAS HIGH COURT] in favor of assessee - The petitioner has raised the above contention before the Assessing Officer, while submitting his reply to the notice dated 31.12.2013 and produced the copy of the decision. However, the Assessing Officer did not consider the same. Though the Assessing Officer did not consider the case of Eicher Motors Limited, reliance was placed on the decision of this Court in the case of The Deputy Commissioner of Commercial Taxes vs. K. Behannan Thomas [1976 (4) TMI 202 - MADRAS HIGH COURT]. In the light of the above decision, even the transfer of one line of business of the petitioner, namely, windmill division amounts to transfer of business as a whole. The transfer of business as a whole is precisely an interpretation given by the Division Bench in the case of Eicher Motors Limited. Therefore, the observation made by the Assessing Officer to that extent, call for interference. Demand set aside - Decided in favor of assessee.
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