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2011 (5) TMI 331 - HC - Income TaxCpital gain under section 50 or 50B - Agreement of sale - Slum sale or not - The impugned transaction is dated 31-1-1990 and therefore provision of section 50B of the Act, which has came into effect from 1-4-2000 is not applicable and therefore finding of the Tribunal to that effect cannot be sustained - However, on perusal of the order passed by the Appellate Authority and the Tribunal, it is clear that they proceeded on the basis that the impugned transaction is a slump sale and there is no finding supported by any reason as to how the impugned transaction would constitute slump sale - It is clear from the order passed by the Assessing Officer that the Assessing Officer has proceeded on the basis presuming that transaction attracts capital gains and treated transaction as short-term capital gains under section 50 of the Act and there is no finding as to whether the impugned transaction is a slump sale, which attract capital gains cannot be sustained - Held that the order passed by the Tribunal, Appellate Authority and the Assessing Officer is liable to be set aside and requires to be remitted back to the Assessing Officer to find out as to whether the impugned transaction is a slump sale and if so, whether it would attracts the provision of section 50 or 50B of the Act as admittedly provision of section 50B of the Act is not applible - Accordingly, answer the substantial question of law in favour of the respondent-assessee.
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