Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 706 - HC - Income TaxRevision u/s 263 - change of opinion - AO taken one permissible view, whether order is erroneous? - transfer of the business undertaking as a whole - reopening of assessment u/s 147 on same ground i.e invoking Section 50B (slump sale) - HELD THAT:- Notice was issued u/s 148 on the ground that the holding company ceased to hold whole of the share capital of the subsidiary company, the exemption granted has to be withdrawn as per provision of Section 47A. The original sale of the textile unit has to be treated as transfer and net worth has to be subjected to capital gains treating this transactions as a slump sales as per provisions of Section 50B. With regard to the proposal made by the AO for reopening the assessment by proposing to invoke Section 50B, the assessee stated that as per Section 2(42C) “Slump Sale” has to be defined to mean the transfer of one or more undertaking as a result of the sale for lumpsum sale without values being assigned to the individual assets and liabilities in such sales. It was further stated that in the assessee's case, the transfer price was based on the individual assets and liabilities of the undertaking transferred and the sale would not qualify as “Slump Sale” as per Section 2(42C). This explanation offered by the Assessee was accepted by the AO and the assessment was completed. For the very same reasons, the Commissioner has invoked the power u/s 263. In the order passed by the CIT, Coimbatore dated 10.03.2008, there is no reference to the reopening made by the AO, notice issued by him, reply given by the assessee and how the assessment was completed. Considering this fact, the Tribunal held that the power u/s 263 could not have been invoked by the Commissioner. The Tribunal rightly took note of the decision in Max India Ltd. [2007 (11) TMI 12 - SUPREME COURT] . Thus, revenue has not made any ground to interfere with the order passed by the Tribunal - Decided against revenue.
|