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2014 (1) TMI 1600 - AT - Income TaxApplication of Section 50B of the Act- Slump sale u/s 2(42C) of the Act - The entire assessment is based on the fact that the Assessing Officer has treated the transfer of assets to M/s. Novapan Industries Ltd. as a slump sale attracting the provisions of section 50B of the Act – Held that:- As per the scheme of amalgamation, there is no monetary consideration received by the assessee-company for transfer of the manufacturing division - Section 50B of the Act provides for computation of capital gains in the case of ‘slump sale’ - Relying upon CIT vs. R.R. Ramakrishna Pillai [1967 (5) TMI 7 - SUPREME Court] - where a person carrying on business, transfers assets to a company in consideration of allotment of shares, it would be a case of exchange but not of sale - since there is no monetary consideration involved in transferring the manufacturing division with all its assets and liabilities to M/s. Novapan Industries Ltd. under scheme of amalgamation approved by the Hon’ble High Court - it cannot be considered to be a slump sale within the meaning ascribed under section 2(42C) of the Act so as to attract the liability of the capital gain under section 50B of the Act – the order of the CIT(A) upheld – Decided against Revenue.
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