TMI Blog1991 (12) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ing upon the Tribunal to state the case and to refer the following questions said to be of law for the opinion of this court : "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in deleting the addition of Rs. 38,908, made under the provisions of section 41(2) of the Income-tax Act, 1961, on the ground that liability to tax under section 41(2) was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two branches along with all assets and liabilities were sold to two different co-operative societies, respectively, for a sum of Rs. 2,65,179 and Rs. 1,04,454. The assets included buildings, machinery, furniture, fixtures, loans and advances to the staff, stock, security deposit, goodwill, etc., and the liabilities included loans, unpaid bonus and wages, outstanding liabilities, etc. While asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gneeram Bangur and Co. (Land Department) [1965] 56 ITR (Sh. N) 13, the Supreme Court considered the question about the taxability of the surplus amount arising on the sale of a business as a going concern. The decision of the Supreme Court was that where the sale was of the concern as a whole and a slump price was paid, no portion of this price was attributable to the stock-in-trade and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these submissions. The first submission pertains to a factual aspect. As a matter of pure principle, even a branch of a publishing house like this can have different goodwill which depends upon a host of factors such as popularity, performance, circulation, peculiarities of the region, etc. As regards the second submission, a mere look at the agreements would clearly indicate that what was sold wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i v. CIT [1981] 130 ITR 655. Attention of the Tribunal was also drawn to the said decision. Rightly has the Tribunal come to the conclusion that the ratio of that decision would not apply to the instant case since it pertains to different backdrop and two separate and individual agreements of sale. The Tribunal has rightly held that no question of law arose for reference. The present application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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