TMI Blog2019 (2) TMI 1542X X X X Extracts X X X X X X X X Extracts X X X X ..... CRM division stood sold from the effective date - Date of transfer - Date of agreement - HELD THAT:- The agreement in question referred to the effective date of transfer as 31st May 2007. Tribunal records that written agreement which was executed a couple of months later and was registered some time thereafter, would not make any difference. The issue can be looked from slightly different angle. The date assessee stopped claiming income arising out of conducting charges of the said unit after 31st May 2007, surely the purchaser JSW would also have stopped claiming expenditure towards such charges. If both sides have accordingly acted in terms of clear understanding, the revenue authority had no reason or even power to shift such date. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of the case and in law, the Hon ble ITAT was correct in law in holding that the valuation report obtained by the buyer of the CRM division could at best be taken to be for the purpose of reaching a board enterprise value by the buyer and could not be construed as assigning of sale values to the individual assets and liabilities as understood for the purpose of section 2(42C) of the Income Tax Act, 1961? (C) Whether on the facts and in the circumstances of the case and in law, the Hon ble ITAT was correct in law in holding that the CRM division stood sold from the effective date of 31/5/2007 mentioned in the agreement and not from the date of 4/9/2007 being the date of registration of the deed of transfer dated 11th June 2007? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expression Unit for the purpose of deed of transfer was defined as to mean all the tangible and intangible assets and liabilities of the entire unit . 4] In view of the above position, we do not find that the Tribunal has committed any error. The sale in question was correctly held to be a slump sale as defined in section 2(42C) of the Act. Merely because for the purpose of arriving at a proper valuation for transfer of the entire unit in the valuation report obtained by the purchaser, the valuer assigned separate valuation to different parts of the unit would not take away the fact that what was sold by the assessee was entire unit as a going concern. No question of law, therefore, arises. 5] The second question raised by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner. It was, thereafter, not possible for A.O. to shift the effective date of transfer. 7] We do not find that the Tribunal has committed any error. The agreement in question referred to the effective date of transfer as 31st May 2007. The Tribunal records that written agreement which was executed a couple of months later and was registered some time thereafter, would not make any difference. The issue can be looked from slightly different angle. The date assessee stopped claiming income arising out of conducting charges of the said unit after 31st May 2007, surely the purchaser JSW would also have stopped claiming expenditure towards such charges. If both sides have accordingly acted in terms of clear understanding, the revenue authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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