TaxTMI 
TaxTMI 
2004 (6) TMI 25
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....ncome-tax Appellate Tribunal is right in law and had valid materials to hold that the consideration for the purpose of computing the capital gains should be taken at Rs. 3 crores and that the Commissioner of Income-tax should not have directed the Assessing Officer to replace Rs. 3 crores by Rs. 5.97 crores?" The brief facts necessary for the disposal of the appeal are: the respondent-company entered into an agreement with its subsidiary company M/s. Ucal Components Ltd. on March 18, 1992, and sold its manufacturing unit at Maraimalai Nagar as a going concern for a sum of Rs. 3 crores. The Assessing Officer came to the conclusion that the transfer would attract the provisions of the capital gain and held a sum of Rs. 3 crores received as s....
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....ppeal before the Income-tax Appellate Tribunal. The Tribunal rejected the contention of the assessee that the Commissioner of Income-tax has no jurisdiction under section 263 of the Act to revise the order of assessment and upheld the jurisdiction of the Commissioner of Income-tax to invoke his revisional powers under section 263 of the Act and the finding of the Appellate Tribunal regarding the jurisdiction of the Commissioner of Income-tax to exercise the power of revision has become final. However, the Tribunal held that the Commissioner of Income-tax, Tamil Nadu, need not have directed the Assessing Officer to substitute the sum of Rs. 5.97 crores to be taken as consideration instead of Rs. 3 crores as according to the Tribunal the sum ....
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.... levy of capital gains tax on the transfer of its manufacturing unit on the basis that it was a slump sale would not attract the levy of capital gains tax, is pending before the Tribunal, on determination of the said question regarding the liability of the assessee to pay the tax on the transfer of the assets, the question regarding quantum of amount of capital gains need not be gone into. We are, therefore, of the view, the interest of justice would be met by setting aside the order of the Income-tax Appellate Tribunal which is adverse to the interest of the Revenue and remit the matter to the Appellate Tribunal for fresh consideration de novo in accordance with law, and the Appellate Tribunal is directed to take both the appeals together.....