TMI Blog2019 (7) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law in quashing the order passed by the Commissioner of Income-tax under Section 263 of the Income-tax Act, even though the order passed by the assessing officer is erroneous and prejudicial to the interest of the revenue and failed to apply his mind to the case in all its perspectives of the case? And (ii) Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in law in holding Section 50B was not applicable to the facts of this case, even though the transfer of the business undertaking as a whole by itself is a property within the meaning of Section 2(47) it may be subject to capital gains by virtue of the provision of Section 50 of the Income Tax Act, 1961? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue under Section 263 of the Act has to be read in conjunction with the expression erroneous order passed by the Assessing Officer. It was further pointed out that every loss of revenue as a consequence of an order of the Assessing Officer cannot be treated as prejudicial to the interest of the revenue. An illustration was pointed out stating that when the ITO adopted one of the courses permissible in law and it has resulted in loss of revenue; or where two views are possible and the ITO has taken one view with which the CIT does not agree, it cannot be treated as an erroneous order prejudicial to the interest of the revenue, unless the view taken by the ITO is unsustainable in law. This decision was followed in Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not subject to depreciation, were transferred at book value being cost to the assessee. The details as to how the value of the assets adopted for the purpose of transfer was also indicated. With regard to the proposal made by the Assessing Officer for reopening the assessment by proposing to invoke Section 50B of the Act, the assessee stated that as per Section 2(42C) of the Act 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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