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2018 (6) TMI 1807 - HC - Income TaxSlump sale - sale of entire undertaking of a tea estate - as per AO sale of a tea estate by the assessee the land and the agricultural part of the business was given a particular value and all other assets of the tea estate were given another combined value and the AO perceived the sale to be a slump sale where the entire undertaking was perceived to have been sold without any itemization - HELD THAT:- In course of the assessee’s appeal before the Commissioner (Appeals), the Commissioner (Appeals) not only discovered that some of the liabilities pertaining to the tea estate had not been transferred to the transferee, but also that the sale consideration was reduced from the written down value of the block of depreciable assets and disclosed as deemed short-term capital gain under Section 50. Commissioner (Appeals) also found that in the valuation report and the books of accounts, specific values were consciously assigned to specific classes of assets by the parties to the transfer and the quantum of profit was also separately worked out on the transfer of agricultural land and plantation. The assessee disclosed the profits separately because plantation land was not a depreciable asset. The valuer found the value of the land and plantation to be about Rs.12.20 crore. The cost of such land and plantation in the assessee’s books was about Rs.6.97 crore. A profit of about Rs.5.23 crore was disclosed on the transfer which was separately provided for in the balance-sheet as agricultural development reserve. On the Commissioner’s detailed inquiry as to the manner in which the sale was conducted, Commissioner (Appeals) was satisfied that it was not a slump sale. Commissioner (Appeals) referred to several judgments; but at the end of the day, it was a pure consideration on facts and it is such factual finding which has been endorsed by the Appellate Tribunal in the judgment and order impugned dated November 6, 2015. Even though the Assessing Officer found that a certain value had been attributed to the land and plantation and another value attributed to the plant, machinery, buildings and non-agricultural assets, the Commissioner (Appeals) found the break-up backed by valuation reports and the like
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