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2016 (4) TMI 1131 - AT - Income TaxCapital gain u/s 50B - whether transfer of the division as slum sale in terms of the provisions of Sec. 2(42)(C) - Held that:- From the definition of slump sale and undertaking”, it is clear that the provision of Sec/ 50B of the Act will be attracted when an undertaking is transferred for lump sum consideration without values being assigned to the individual assets and liabilities in such sales. In the instant case the transferee has taken over all fixed assets, specified current assets and not taken over all the loan and liabilities. Therefore in our considered view the transaction of sale of the fixed and current assets is out of the purview of slump sale as specified under section 50B of the Act. - Decided in favour of assessee Disallowance of compensation on account of machine not performing at an agreed level - Held that:- The compensation was awarded for not meeting the performance parameters. The compensation was not computed with the reference to the cost of the said machines. The compensation paid was neither in form of discount nor against the price nor it was in the nature of subsidy nor it was in the nature of the reimbursement. We further find that it was not even compensation for the recouping the damage caused to the plant and machinery. None of the conditions specified in Sec. 143(1) of the Act for deducting the actual cost from value of the machines were applicable to the compensation. Therefore we are inclined not to reduce the actual cost of the plant and machinery by the amount of compensation - Decided in favour of assessee Allowance of claim of assessee’s bad debt - Held that:- As find from the order of learned CIT(A) we find that the bad debts claimed by the assessee in the year under consideration were recovered in the subsequent AY 2006-07 and offered for taxation. The ld. DR could not bring anything on record contrary to the finding of the learned CIT(A). Therefore, in our opinion, that the debtors shown by the assessee were the genuine. - Decided in favour of assessee Disallowance u/s 43B for delay in deposit of PF and ESI contributions - Held that:- As from the assessment order we find that all the payment of employees contribution were made before the due date of filing of Income Tax Return as specified u/s.139(1) of the Act. Now, this issue stands covered in favour of assessee and against the Revenue by the decision of Hon’ble jurisdictional High Court in the case of CIT v. M/s Vijay Shree Limited [2011 (9) TMI 30 - CALCUTTA HIGH COURT ] - Decided in favour of assessee
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