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2016 (4) TMI 519 - AT - Income TaxSlump sale u/s. 2(42C) read with section 50B - sale of assets of chemical units - Held that:- Hon'ble Calcutta High Court in the case of Kwality Ice Cream (India) Ltd. v. CIT (2011 (1) TMI 905 - Calcutta High Court ) in which also though the sale of the undertaking was for a lump sum consideration it was held that sec. 50 of the Act in respect of depreciable assets will override all other previsions and for depreciable assets, the value has to be determined in accordance with the principles of block of assets read with sec. 43(6) of the Act. In view of the aforesaid facts and circumstances, we are of the view that sale and transfer of some of the assets of the undertaking for which sale prices had been predetermined and agreed and disclosed in the agreement itself without transferring other assets and without transferring any of the liabilities cannot be treated as slump sale. The assessee has sold the chemical unit not as a going concern but itemized sale was made vide agreement and hence, the sale cannot be treated as slump sale. We reverse the orders of the lower authorities and this issue of assessee is allowed.
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