9911796707
TMI Blog2013 (4) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 69 of the Income Tax Act, 1961 on account of alleged unexplained investment. It was the case of the revenue that while the respondent/ assessee had disclosed that it had paid a sum of Rs.41.80 crores, in fact, it had purchased assets worth Rs.64.38 crores and, therefore, there was an unexplained investment of Rs.22.58 crores (Rs.64.38 crores minus Rs.41.80 crores). 2. The assessee had placed the value of the total assets purchased by it by way of a slump purchase in the following manner: - "Total value of assets as recorded in the books of accounts S.No. Particulars Amount Rs. Crores 1. Plant & Machinery 13.82 2. Goodwill 50.56 3. Total value 64.38" 3. The sum of Rs.41.80 crores was paid by discharge of the liabilities as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to amount of Rs.41.80 crores which was actually paid by the assessee to Dhillon Kool as also with regard to the sum of Rs.15.80 crores which was mentioned in Schedule II of the Business Transfer Agreement and Rs.1.25 crores towards transaction costs, there is a dispute with regard to the sum of Rs.5.53 crores which has been allegedly incurred by the respondent/ assessee towards liabilities in respect of assets referred to in clause 1.1 of the Business Transfer Agreement. He submitted that the only liabilities that have been mentioned in clause 1.1 are those which are indicated in Schedule II to the Business Transfer Agreement. And, according to the learned counsel for the appellant, the total extent of liabilities mentioned in Schedule II t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is specifically recorded that the assessee had taken over (a) the liabilities of Rs.15.80 crores and (b) the liabilities/ loans against specific leased assets of Rs.5.53 crores. The assessee had also incurred transaction costs of Rs.1.25 crores. Our attention was also drawn to the paragraph 12 and 13 of the Tribunal's order which reads as under: - "12. We have considered the rival contentions of both the parties and have carefully perused the orders of the authorities below. It is not in dispute that the value of the total assets taken over by the assessee from DKDB in pursuance to the business transfer agreement on slump sale basis has been determined by the assessee at Rs.64.38 crores, which has been allocated to the following assets: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of Rs.35.30 as and when they would become payable and the balance purchase price of Rs.6.5 crores shall be released or paid by the buyer in the manner as provided in Article 6.3.3 of the agreement. Article 6.3.2 provides that the sum of Rs.11.60 crores and Rs.60,00,000/- towards sale and excise liability, and statutory liability respectively shall be paid by the buyer directly to the statutory authorities on the signing of the agreement. In the accounts, the assessee had also shown liabilities taken over of Rs.6.78 crores representing the liabilities of leased assets of Rs.5.53 crores and transaction cost of Rs.1.25 crores. Therefore, the total value of the assets corresponding to the liabilities taken over comes to following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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